How Do Overtime Laws Affect You?
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 Department of Labor recently announced its new overtime rule which significantly changes how employers classify employees as exempt from overtime pay. Starting January 1, 2025, the new overtime threshold for executive, administrative, and professional employees to qualify for overtime exemptions is $58,656 ($1,128/week).
With this latest update, employers must decide what is the most cost-effective way to pay employees. Whether it’s raising salaries to meet the new threshold or reclassifying them as nonexempt and pay the overtime, use the calculator below to see how the new overtime rules impact your budget.
Previous:
DE&I at WorkNext:
HR Compliance Calculator