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ARTICLE · 07 NOVEMBER 2024

Overtime Pay Regulations Set To Change

On April 23, 2024, the U.S. Department of Labor ("DOL") announced an update to the Fair Labor Standards Act overtime rule ("Overtime Rule") which has substantial payroll implications and requires employers' immediate attention.

United StatesEmployment and HR

On April 23, 2024, the U.S. Department of Labor ("DOL") announced an update to the Fair Labor Standards Act overtime rule ("Overtime Rule") which has substantial payroll implications and requires employers' immediate attention.

The DOL's update to the Overtime Rule increases the salary threshold for exempt employees – those working in professional, executive, or administrative positions who receive payment on a salaried basis – in determining eligibility for overtime pay. Currently, an otherwise exempt employee must receive a salary equivalent to $43,888 per year in order to be exempt from overtime pay. Importantly, on January 1, 2025, the salary threshold increases to $58,656 per year in order for employees to be exempt from overtime pay.

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