Biden Administration Updates FLSA Overtime Rules

WASHINGTON — The Biden Administration has finalized updates to?overtime?rules under the Fair Labor Standards Act (FLSA), aimed at extending overtime protections for millions of American workers.?

The revised regulations, announced by the U.S. Department of labor, raise the salary threshold under which most salaried workers are entitled to?overtime?pay. Section 13(a)(1) of the FLSA exempts certain employees in executive, administrative, or professional positions from minimum wage and overtime pay rules, as defined by the Secretary of Labor. The new threshold works to ensure that employees performing considerable amounts of nonexempt work are included in the exemption by increasing the total annual compensation threshold to $43,888—effective July 1, 2024.

The timing of these changes coincides with broader economic concerns for US citizens, including rising inflation and the cost of living. The Department of Labor will enforce these changes, emphasizing compliance with the new standards to protect workers' rights.

In an April 2024 news release, Julie Sue, Acting Secretary, lamented “Too often, lower-paid salaried workers are doing the same job as their hourly counterparts but are spending more time away from their families for no additional pay. That is unacceptable. The Biden-Harris administration is following through on our promise to raise the bar for workers who help lay the foundation for our economic prosperity”.

To ensure these thresholds remain effective over time, the Department will regularly update them based on current wage data and every three years thereafter—increasing to $58,656 by Jan. 1, 2025.

In addition to expanding?overtime?protections for lower-paid salaried workers, the updated rules work to ensure that non-exempt employees receive time-and-a-half pay when working more than 40 hours in a workweek.? ?

To comply with the new regulations, employers are advised to review their payroll practices and adjust employee classifications as necessary.

For more information on the updated FLSA?overtime?rules, visit:?https://www.dol.gov/sites/dolgov/files/WHD/flsa/ot-541-final-rule.pdf