Department of Labor Finalizes Overtime Rule

DOL has issued a final rule that alters overtime regulations.

April 25, 2024

The U.S. Department of Labor (DOL) has issued a final rule that alters the overtime regulations under the Fair Labor Standards Act.

According to a DOL press release, updated rule includes two-tiered increases to the minimum salary threshold and the threshold for highly compensated employees (HCE) as well as automatic updates to both thresholds. The minimum salary threshold will be increased to US$43,888 on July 1 and then to $58,656 on January 1, 2025. This represents more than a 60% increase over the current threshold of $35,568. The HCE threshold will be raised to $132,964 on July 1 and then to $151,164 on January 1, 2025—a 71% increase from the current threshold of $107,432. The updated rule also implements automatic updates to both the minimum salary threshold and the HCE threshold, both of which will be increased every three years.

“This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time,” said Julie Su, Acting Secretary of Labor. “Too often, lower-paid salaried workers are doing the same job as their hourly counterparts but are spending more time away from their families for no additional pay. That is unacceptable. The Biden-Harris administration is following through on our promise to raise the bar for workers who help lay the foundation for our economic prosperity.”

ISSA submitted comments to the DOL opposing the then proposed final ruling late last year. The association’s comments in opposition to the rulemaking were cited in the final rule. To learn more about this issue and ISSA advocacy, please contact ISSA Director of Government Affairs John Nothdurft.

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