DOL Raising Salary Threshold for Employees Outside of California
Breaking: DOL will raise overtime salary threshold to $44K in July, $59K next year.
The Department of Labor (DOL) is updating the rules for overtime pay in a two-step process. They're increasing the minimum salary that workers need to earn to be exempt from getting overtime pay.
Currently, if you earn less than $35,568 a year, you're eligible for overtime pay. But starting July 1, that minimum will go up to $43,888 a year. Then, on January 1, 2025, it will increase again to $58,656 a year.
These changes mean more workers will qualify for overtime pay. The DOL estimates that millions of workers across the United States will be affected. They'll review and update these salary thresholds every three years to keep up with changes in wages.
These updates to the overtime pay rules mark an important change for workers across the country. Whether you're an employer navigating these adjustments or an employee seeking clarity on how these changes affect you, we're here to help.
The new rule affects different types of workers, including executives, administrators, professionals, outside salespeople, and some computer employees. There's also a separate rule for highly paid workers.