A new federal overtime rule that went into effect on Monday might mean that more of your workers are eligible for overtime pay, Inc. Magazine reports.
Under the Fair Labor Standards Act, employees are entitled to at least one-and-a-half times their rate for hours worked beyond the 40-hour workweek unless they are exempt.
While exemptions previously only included salaried employees primarily performing “executive, administrative or professional duties” and making $35,568 per year or more, the minimum salary threshold has now increased to $43,888 per year and will increase to $58,656 on Jan. 1, 2025.
The Department of Labor says the new rule will affect more than 4 million workers and that salary thresholds will be updated every three years beginning July 1, 2027.
