Department of Labor to Raise Overtime Salary Threshold

On Tuesday, April 23, 2024, the Department of Labor issued a final ruling that will increase the salary level, determining what salaried workers are entitled to overtime pay under the FLSA guidelines. The new overtime salary threshold will go into effect on July 1, 2024. With this ruling, most salaried workers making less than $844 per week or $43,888 per year will be eligible for overtime. Furthermore, effective January 1, 2025, the amounts will rise to $1,128 per week or $58,656 per year. Beginning July 1, 2027, these thresholds will be updated every three years. Additionally, this rule will increase the total annual compensation for highly compensated employees who are not entitled to overtime pay from $107,432 to $132,964 and then is scheduled to increase again on January 1, 2025, to $151,164.

https://blog.dol.gov/2024/04/23/what-the-new-overtime-rule-means-for-workers#:~:text=The%20rule%20will%20also%20increase,on%20Jan.%201%2C%202025

Should you have any questions about the bans on Noncompete agreements or the DOL ruling on the increased overtime salary threshold, please do not hesitate to contact your designated Human Capital Consultant.