On April 26, the Department of Labor released a final rule that will raise the salary threshold below which employees must be paid overtime for all hours worked over 40 per week. Starting on July 1, the threshold increased from $35,568 to $43,888, and that threshold will rise again to $58,656 on January 1, 2025. The rule requires automatic increases in the threshold salary level every three years that are tied to wage inflation. The rule will force businesses to absorb these cost increases, reclassify many workers from salaried to hourly, reduce opportunity and workplace flexibility, and consolidate many positions.
For more information, watch the webinar on the overtime rule.
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