New Overtime Eligibility Rule Finalized

The Biden-Harris administration has finalized a rule to adjust the overtime eligibility threshold for salaried workers. Starting July 1, 2024, the salary threshold for exemption from overtime pay will increase from $35,568 to $43,888 per year, with a further increase to $58,656 scheduled for January 1, 2025. This change is intended to extend overtime protections to more workers, with the threshold being adjusted every three years starting in 2027.

Impact on Workers and Employers

The rule is set to benefit millions of lower-paid salaried employees by ensuring they are compensated for overtime. Employers, on the other hand, will need to adjust payroll systems and possibly reclassify some employees to comply with the new regulations.

Scheduled Updates and Economic Implications

The Department of Labor will review and update the salary threshold every three years, beginning in 2027, to keep pace with economic changes. This structured update aims to maintain the effectiveness of overtime protections.

For further details, visit the [Department of Labor’s website](https://www.dol.gov/newsroom/releases/whd/whd20240423-0).