US DoL Final Rule on Overtime Pay Effective 07/01/2024

[bcr229]

https://www.dol.gov/agencies/whd/overtime/rulemaking

The final rule will increase the standard salary level and the highly compensated employee total annual compensation threshold on the rule’s effective date on July 1, 2024, and on January 1, 2025, when changes in the methodologies used to calculate these levels become applicable. The final rule also provides for future updates of these levels every three years to reflect current earnings data. These scheduled increases are displayed below.

 

[Bali Hai Again]

https://www.dol.gov/agencies/whd/overtime/rulemaking

BIDEN-HARRIS ADMINISTRATION FINALIZES RULE TO INCREASE COMPENSATION THRESHOLDS FOR OVERTIME ELIGIBILITY, EXPANDING PROTECTIONS FOR MILLIONS OF WORKERS
Rule ensures salaried workers making less than $58,656 receive fair pay for long hours

The timing: Obvious.
The impact: Remains to be seen.

 

[bcr229]

Going forward it simply looks like the salary thresholds are adjusted annually for inflation instead of the DoL having to go through the process of issuing a new rule every few years.

 

[Taxing Matters]

Going forward it simply looks like the salary thresholds are adjusted annually for inflation instead of the DoL having to go through the process of issuing a new rule every few years.

That's what I'd expect. That's the norm now for federal statutes and regulations that state specific dollar amount. About two decades Congress finally woke up the fact that inflation is always going to be there and if they want the statutes to continue to do what they want without having to pass amendments every few years they needed to provide inflation adjustiments, in including Social Security and other benefits.

 

[Bali Hai Again]

So let me see, if cost effective to pay the salary slightly above the threshold and work the individual 80 hours per week and avoid OT, what will happen? I can see salaried individuals being worked long days for business needs and told to take time off in the work week to keep the hours 40 or under.

If I were paid OT in addition to my salary all those years, I would own an island somewhere.

Aren’t salary improvement programs based on merit designed to include inflation?

 

[LdiJ]

So let me see, if cost effective to pay the salary slightly above the threshold and work the individual 80 hours per week and avoid OT, what will happen? I can see salaried individuals being worked long days for business needs and told to take time off in the work week to keep the hours 40 or under.

That is a normal way to handle such a thing. Comp time is the way that many salaried individuals are compensated for having to work extra long hours.

If I were paid OT in addition to my salary all those years, I would own an island somewhere.

The system is designed to prevent employers from treating employees who should get overtime as salaried, in order to avoid overtime. Otherwise, employers could get around minimum wage requirements even.

Aren’t salary improvement programs based on merit designed to include inflation?

With most employers, I would assume so.