DOL Releases Final Overtime Rule

The U.S. Department of Labor (DOL) released its final overtime rule, significantly increasing the minimum annual salary threshold determining overtime pay eligibility under the Fair Labor Standards Act (FLSA) from $35,568 to $58,656. The rule will gradually come into effect, with an increase to $43,888 on July 1, 2024, and an increase to $58,656 effective January 1, 2025. The final rule includes an automatic update to the overtime threshold every three years based on available wage data at that time and the DOL expects to announce the first such update on July 1, 2027, which will affect both the standard salary and HCE thresholds. Unless specifically exempted, an employee covered by the FLSA must receive pay for hours worked over 40 in a workweek at a rate not less than one and one-half their regular pay rate. Our partners at the National Restaurant Association and the American Hotel & Lodging Association both vehemently opposed this rule and are reviewing all legal options at their disposal to challenge this rule in Federal Court. 

Additional Resources:

• DOL: Final Rule on Overtime
• DOL: Final Rule on Overtime FAQ
• DOL: Final Rule Earnings Threshold Chart