DOL Overtime Changes: Is Your Business Ready?
The Department of Labor’s new overtime rule could impact an estimated 4.3 million United States workers. Here’s what you need to know.
November 2024 UPDATE: DOL Overtime Rule Overturned
On November 15, 2024, a Texas federal judge struck down the U.S. Department of Labor’s expanded overtime rule that would’ve made 4 million more salaried workers eligible for overtime pay. The ruling vacates the DOL’s rule that changed the threshold at which workers qualified for overtime from $35,568 to $43,888 effective July 1 and would have raised it to $58,656 on Jan. 1, 2025. If the Labor Department appeals, they can try to get the rule reinstated, but the incoming Trump administration may opt not to. The ruling sets the overtime exemption at the 2019 threshold of $35,568.
The DOL’s New Overtime Rule
On April 23, 2024, the U.S. Department of Labor (DOL) announced its new overtime rule, and increased salary levels for executive, administrative and professional workers (EAP) and highly compensated employees (HCE) to be exempt from overtime.
Effective January 1, 2025, to qualify for exemption, EAP employees must earn at least $58,656 ($1,128 per week). For highly compensated employees, the threshold increases to $151,164.
Starting July 1, 2027, salary thresholds will update every three years to reflect changes in worker pay.
Are you prepared?
This new overtime rule means employers need to take a close look at their salary bandwidths and how much overtime employees are using. Does it make more sense to increase salaries or continue paying overtime?
Examine your current employees
Employers must review each exempt employee to verify that they will remain exempt under the new rules.
Track hours worked
After January 1, 2025, employers must carefully track hours worked for any employee making less than $58,656.
Ensure accurate recordkeeping
Employers should maintain detailed records of hours worked in case of an audit.
How Paycor can help
Don’t wait to act. Now is the time to prepare for impending changes and Paycor has the products to help you stay ahead.
Paycor’s Department of Labor solution offers real-time compensation, timekeeping, and reporting through one unified solution. You can also use our HR Support Center tool to update your handbooks and company policies, or even get help from a certified HR professional.
Department of Labor Solution
Paycor’s Department of Labor solution offers you real-time compensation, timekeeping and reporting through one unified solution. You can also use our HR Support Center solution to update your handbooks and company policies, or even get help from a certified HR professional. With our Department of Labor Solution, you get:
Time & Attendance
Paycor’s time solutions help you accurately manage your employee’s hours through a unified system with payroll. Employers need a time solution put in place for their affected employees, so they have the accuracy, decision support, and audit trail required to effectively handle this proposed regulation.
Reporting
Employers will need to track and report data related to hours worked and compensation regularly. Paycor’s Reporting and Analytics help you get the data you need and allows you to report on compensation and hours worked data together. No need to download multiple files and copy and paste reports. Just a few clicks and you’ll have the data you need.
HR Support
Paycor’s HR Support Center will help you ensure your have up-to-date policies and employee documentation related to these updates. You can upgrade to On Demand and get help from a Certified HR Professional whenever you need it. It’s like hiring an HR team at a fraction of the cost.
This information is not intended as legal advice. You should seek specific legal advice before acting with regard to the subjects mentioned herein. Any calculations contained herein are for example purposes only.
Resources
Explore our resource center to uncover articles, guides, webinars, infographics and more — all designed to help healthcare leaders unlock the true power of HR.
On-Demand Webinar
The DOL’s Final Overtime Rule: What It Means to You
The U.S. Department of Labor (DOL) released their final rule, updating the Fair Labor Standards Act (FLSA)’s overtime pay requirements. The rule increases the minimum salary threshold to $43,888 on July 1, 2024, and then to $58,656 on January 1, 2025.
Article
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Exempt vs. Non-Exempt Employees. What’s the Big Difference?
Misclassifying employees can result in enormous financial consequences for a business. Understand the difference in exempt and non-exempt employees.
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DOL Final 2025 Overtime Rules: Quickstart Guide for Employers
The DOL issued final overtime rules in April 2024. Use this guide to help your organization comply with regulations.
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