Labor Department Publishes Final Overtime Rule


The Labor Department on Apr. 23 published a final rule updating the regulations for the overtime “white collar” salary exemption.

Under the Fair Labor Standards Act, certain employees are exempted from overtime pay requirements if they are salaried, make more than a certain amount per year, and work in a “bona fide executive, administrative, or professional capacity.” This exemption is often referred to as the “white collar” overtime exemption.

The Labor Department’s final rule substantially raises the salary threshold used to determine whether a worker is exempt from overtime pay from $35,568 to $58,656 per year beginning in January 2025. The rule also includes a provision that will automatically update the salary threshold every three years to reflect new earnings data.

The Labor Department initially proposed last year to raise the salary level to roughly $55,000. NATSO filed comments on the Proposal opposing the increase and supporting the current threshold that was previously set by the Trump Administration. The final rule’s new $58,656 threshold is reportedly based on newer Bureau of Labor Statistics salary data.

NATSO members are particularly impacted by rules governing overtime pay since many NATSO employees work unpredictable hours doing a variety of different types of work.

Once published in the Federal Register, the changes will begin to take effect on July 1, and the salary threshold will immediately be raised to a new, temporary amount of $43,888 per year.

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