New overtime pay regulations, passed by the U.S. Department of Labor (DOL) under the Fair Labor Standards Act, went into effect on July 1st.1
This significant change aims to extend overtime protections to millions of salaried workers.
A Pillar of Fairness for American Workers
According to the recent press release, “For more than 80 years, the 40-hour workweek has been a pillar of fairness for American workers,” said Julie Su, acting Labor Secretary. “It’s the promise of going home to loved ones after putting in your time, not endless hours for flat pay.”(ref)
The new rule seeks to restore balance by expanding overtime protections for lower-paid salaried workers who were previously ineligible. This ensures that more workers receive the overtime pay they are entitled to under the law.
Increased Salary Threshold for Overtime Eligibility
Starting this week, roughly 1 million workers earning $43,888 or less are newly eligible for overtime benefits. This salary threshold will increase further to $58,656 on January 1st, 2025, and will continue to be updated every three years.
This significant increase of over 60% from the previous threshold of $35,568 will have a profound impact on both businesses and employees.(ref)
Impact on Businesses & Employees
Business owners and employees will both need to adapt to this change. The increased salary threshold for overtime eligibility may require businesses to adjust their payroll practices, while employees may find themselves eligible for overtime pay for the first time.
Scott Tackett, a business development advisor, recently discussed the impact and path forward for businesses in a Strait Talk! episode.(ref)
Opposition & Legal Challenges
ISSA, a cleaning industry association, submitted comments to the DOL opposing the proposed ruling late last year.(ref) Their comments were even cited in the final rule.
Furthermore, three separate lawsuits have been filed, challenging the DOL’s authority to make this change.(ref)
Looking Ahead
The new overtime pay regulations mark a significant shift in labor practices in the U.S. As both businesses and employees move towards this change, it remains to be seen how the legal challenges will unfold and what the long-term impact will be.
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Martha A. Lavallie
Martha is a journalist with close to a decade of experience in uncovering and reporting on the most compelling stories of our time. Passionate about staying ahead of the curve, she specializes in shedding light on trending topics and captivating global narratives. Her insightful articles have garnered acclaim, making her a trusted voice in today's dynamic media landscape.
