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New Overtime-Pay Rule Takes Effect

DOL extends overtime protections for millions of salaried workers.

July 3, 2024

New overtime-pay regulations took effect on July 1, which the U.S. Department of Labor (DOL) passed under the Fair Labor Standards Act. According to a press release, the new rule extends overtime protections for millions of salaried workers.

“For more than 80 years, the 40-hour workweek has been a pillar of fairness for American workers,” said Julie Su, acting labor secretary. “It’s the promise of going home to loved ones after putting in your time, not endless hours for flat pay. Far too many are stuck in jobs that disregard this principle. Today, our rule to restore that balance by expanding overtime protections for our nation’s lower-paid salaried workers goes into effect. This rule helps ensure that more lower-paid salaried workers who should receive overtime protections under the law actually receive those protections.”

Starting earlier this week, roughly 1 million workers making US$43,888 or less are newly eligible for overtime benefits. On Jan. 1, 2025, the salary threshold will increase to $58,656, then update every three years. As CMM previously reported, this represents more than a 60% increase over the current threshold of $35,568. 

This significant change will profoundly impact both business owners and employees. Scott Tackett, a business development advisor with Violand Management Associates, recently explained the impact and path forward for businesses in a CMM Strait Talk! episode.

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. Additionally, three separate lawsuits have been filed that charge the DOL lacks the authority to make the change.

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