New overtime rules will kick in this summer, which could mean more money in your pocket. The new rules from the Department of Labor will allow millions of workers to be eligible for overtime pay.
Under the current regulations of the Fair Labor Standards Act, hourly or non-exempt employees who work over 40 hours a week are entitled to overtime compensation of 1.5 of their regular pay.
Salary workers, or those who are paid a fixed amount above $35,568 per year ($684 per week) are exempt from the Fair Labor Standards Act’s overtime regulations, meaning they are not entitled to overtime pay. Those employees primarily perform executive, administrative, or professional duties, as provided in the Department of Labor’s regulations.
Under the new rules, after July 1, salary-compensated employees who make $43,888 or less a year, equivalent to about $844 per week, will be eligible for overtime pay. The final rule updates and revises the regulations issued under section 13(a)(1) of the Fair Labor Standards Act.
On January 1, 2025, the Department is set to raise the threshold again to those who make under $58,656 per year, or $1,128 per week.
