Complete Story
06/13/2024
New Overtime Changes to Take Effect July 1, 2024
More than a dozen business and industry groups have challenged the changes
Millions of American workers will soon be eligible for overtime pay as a result of a final Labor Department rule set to take effect July 1.
By the numbers: Beginning July 1, salaried workers earning less than $43,888 a year will qualify for 1.5 times pay if they work more than 40 hours a week.
-
That’s up from the current threshold of $35,568 a year.
-
The threshold will expand again on Jan. 1, 2025 to salaried workers making less than $58,656.
More than a dozen business and industry groups have challenged the changes.
“The department has failed to adequately justify the dramatic change in policy embodied in the Rule, failed to take into account the strong reliance interests of the regulated community, and failed to meaningfully consider reasonable alternatives,” the lawsuit reads.
What they're saying: the American Society of Association Executives (ASAE) submitted comments on the proposed overtime changes last fall asserting that DOL should determine a new threshold without requiring “dramatic changes to the budgets and organizational structures of nonprofit and for-profit employers that would be hard for those organizations to absorb.”
-
ASAE’s general counsel firm Pillsbury Winthrop Shaw Pittman has produced a client alert outlining all of the changes and steps employers should take to evaluate their employee classifications and prepare for compliance.
This article was provided to OSAP by ASAE's Power of Associations and Inroads.
