Revised U.S. Dept. of Labor Overtime Regulations Effective July 1

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On April 23, 2024, the U.S. Dept. of Labor (DOL) issued revised overtime regulations for certain salaried employees which are effective July 1. For those employees that qualify, the Fair Labor Standards Act salary threshold to receive overtime compensation for hours worked in excess of 40 in a given week goes from $684 per week ($35,568 per year) to $844 per week ($43,888 per year) on July 1, and $1,128 per week ($58,656 per year) on Jan. 1, 2025. The threshold for certain highly compensated employees will increase from $107,432 to $132,964 on July 1, and to $151,164 on Jan. 1, 2025. The regulations also provide for automatic updates to overtime salary thresholds starting July 1, 2027. However, there are three lawsuits challenging the regulations with the first filed by a consortium of business organizations, the second by the State of Texas, and the third by a software company. As such, outcomes from these lawsuits may bring changes to the new overtime regulations.

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