The U.S. Department of Labor (DOL) recently announced an overtime rule change for salary workers. Starting from July 1, 2024, more people who earn a salary will be able to get extra money if they work overtime. If you are one of the millions who work more than 40 hours a week, there’s a good chance you’ll see bigger paychecks if you’re not one of the top bosses or managers.
“The Department of Labor is ensuring that lower-paid salaried workers receive their hard-earned pay or get much-deserved time back with their families,” said Wage and Hour Administrator Jessica Looman in a press release. “This rule establishes clear, predictable guidance for employers on how to pay employees for overtime hours and provides more economic security to the millions of people working long hours without overtime pay.”
Understanding the Overtime Rule Change
Here’s a brief rundown of the details:
- Raises the pay threshold: Right now, if you make $35,568 a year or less, you get paid extra for overtime work. After July 1, the overtime threshold goes up to $43,888 a year. That threshold jumps to $58,656 in 2025.
- Fairness for hard work: Acting Secretary Julie Su said this new rule better ensures people get paid for their extra hours.
- They listened to the people: The DOL talked to businesses, workers and unions, listening to what more than 33,000 people had to say.
- It will stay up to date: The DOL will revisit the regulation every three years to make sure the amount of money remains fair, ensuring that the overtime rules keep up as time goes on and things get more expensive.
Employer not compliant?
Workers may find that employers are not aware of the upcoming changes. If the company does not change or is unwilling to change, workers are within their rights to notify the DOL and get the wages owed to them. They may also wish to get legal guidance from an attorney who handles wage violations.