The Biden administration announced a new rule designed to expand overtime pay for millions of the nation’s lower-paid salaried workers. The rule was first proposed last September, reflecting in-depth research of employers, workers, unions, and other stakeholders. This final rule takes into account more than 33,000 comments, and it redefines the salary thresholds determining which executive, administrative or professional employees should be overtime exempt.
On July 1, 2024, the salary threshold for overtime pay will increase from $35,568 to $43,888. The threshold will then increase to $58,656 on January 1, 2025, and it will update every three years using current data to define new salary levels. This is an exciting announcement for million’s of the nation’s lower-paid, salaried workers. The updated rule and salary thresholds help ensure that these workers don’t miss out on additional pay or time with their families when performing the same duties as their hourly counterparts.
Key goals for the new rule include:
- Expansion of overtime protections to millions of lower-paid, salaried workers.
- Ensuring that non-exempt workers receive more time with their families or time-and-a-half pay for working more than 40 hours in a week.
- Issuing regular updates to salary thresholds every three years to ensure that overtime protections do not become less effective.
Pregent law commends this new rule and the benefits it provides to millions of hardworking employees and their families. As a Massachusetts employment law attorney, my firm has a leading reputation for the expert handling of all areas of employment law. If you have a wage or contract dispute, I encourage you to contact me for a free consultation.
