The U.S. Department of Labor (DOL) unveiled its final overtime rule last Tuesday, bringing significant changes to salary thresholds for overtime pay. The rule outlines a scaled approach to increasing the salary threshold over the coming years. ANCOR issued a Press Release on the Final Overtime Rule.
Under the new regulations, the salary threshold for overtime pay will see a gradual rise. Starting from July 1, 2024, the threshold will increase to $43,888. By January 1, 2025, it will further elevate to $58,656. This adjustment, equivalent to the earnings of full-time, salaried workers in the 35th percentile in the lowest-wage Census region, represents a notable 65% increase in the threshold.
Moreover, the rule introduces a mechanism for regular updates to the salary threshold. Beginning July 1, 2027, the threshold will be automatically adjusted every three years to align with the 35th percentile of workers in the lowest-wage Census region.
