New DOL Overtime Rule Goes Into Effect July 1
The new thresholds established by the Labor Department’s rule go into effect on July 1, 2024. Currently, salaried workers making less than $35,568 annually qualify for overtime pay when they work more than 40 hours in a week. Starting today, the threshold will increase from $35,568 to $43,888 per year. It will then increase again to $58,656 on January 1, 2025. Click here to read more background information on this rule.
Legal challenges are still pending and will not provide a nationwide injunction prior to effective date. On June 24, 2024, a federal district judge granted the State of Texas’s motion for a preliminary injunction to postpone the effective date of the rule, concluding the rule “is likely unlawful.” This injunction however is limited to the State of Texas.
Upcoming Webinar Opportunity
The PPA is hosting a webinar with associate member, Hawke McKeon & Sniscak LLP, on July 25 at 9:00 AM to provide an overview to employers on the following two rules that will impact their employees:
- U.S. Department of Labor (DOL) Overtime Rule & Salary Thresholds
- Goes into effect July 1, 2024
- Federal Trade Commission (FTC) Non Compete Ban
- Set to go into effect September 4, 2024
