Jimmy Starke
On April 23, 2024, the Department of Labor expanded eligibility for overtime pay, under the Fair Labor Standards Act (FLSA), to include roughly 4 million new workers. The new rule will raise the salary threshold that determines if a worker is automatically owed overtime pay by over $20,000 per year.
The Fair Labor Standards Act requires employers to pay eligible workers time-and-a-half for any hours they work beyond the normal 40 per week. There are a number of exemptions to that requirement, but any worker that falls under the Department of Labor’s salary threshold is automatically qualified for overtime pay. That salary threshold was $35,568 under the Trump Administration, but has now been raised to $58,656, beginning January 1, 2024. There will also be an intermediate bump up to $43,888 on July 1, 2024, to help companies prepare for the forthcoming increases in payroll costs. Numerous industries are covered by this new rule, but it is estimated that the retail and hospitality sectors will see the biggest increases in workers given overtime.
Legal challenges are expected, but this policy change from the Department of Labor provides long-overdue updates to FLSA’s salary threshold and gives deserving workers access to time-and-a-half pay.
Correia & Puth represents individuals with wage & commission claims. If you have concerns regarding your pay, please contact us.
