The Raise You Didn't Know You Were Getting: FLSA Overtime Rule Changes 2024-2025

Attention employers and employees!

Are you aware of the recent and upcoming changes to the Fair Labor Standards Act (FLSA) overtime regulations? These changes could significantly impact your paycheck, whether you're an employer managing payroll or an employee hoping for a raise.

What's Happening?

As of July 1, 2024, the U.S. Department of Labor (DOL) increased the minimum salary requirements for white-collar exemptions under the FLSA. This means that many employees who were previously exempt from overtime pay may now be eligible if their salary falls below the new threshold.

• The new rule increases the salary threshold for most overtime-exempt white-collar employees from $35,568 per year to $43,888 per year, or $844 per week.
• On January 1, 2025, the salary threshold will increase again to $58,656 per year, or $1,128 per week.

Who's Affected?

These changes primarily impact white-collar workers in executive, administrative, and professional roles who were previously classified as exempt from overtime pay. If your salary falls below the new thresholds, your employer may need to reclassify you as non-exempt, making you eligible for overtime pay for any hours worked beyond 40 in a workweek.

What Does This Mean for You?

• Employees: If you're reclassified as non-exempt, you could see a significant increase in your earnings due to overtime pay. This is essentially a raise you didn't know you were getting!
• Employers: You'll need to review your employee classifications and ensure compliance with the new regulations. This may involve adjusting salaries, reclassifying employees, or implementing new time-tracking systems.

Key Dates to Remember

• July 1, 2024: The first salary threshold increase went into effect.
• January 1, 2025: The second salary threshold increase will take effect.

Stay Informed

It's essential to stay informed about these changes and how they might affect you. Consult with your HR department or an employment law attorney if you have any questions.

Remember, knowledge is power! By understanding these FLSA overtime rule changes, you can ensure that you're receiving the compensation you deserve and that your employer is in compliance with the law.