The DOL Overtime Rule, developed after considering over 33,000 stakeholder comments, will significantly increase compensation thresholds for overtime eligibility. This rule, finalized by the Biden-Harris administration, aims to provide fair compensation to millions of lower-paid salaried workers across the United States.

Under the new rule, which expands overtime protections, the salary thresholds for exempt employees will rise. Starting from July 1, 2024, the threshold will increase to $43,888 annually, up from the previous threshold of $35,568. On January 1, 2025, it will further rise to $58,656, with subsequent adjustments every three years to reflect wage trends.

The administration officials, including Acting Secretary Julie Su and Wage and Hour Administrator Jessica Looman, emphasized the commitment to fair labor practices. Acting Secretary Su highlighted the importance of paying workers for their extra hours, while Administrator Looman emphasized the economic security and family time that this rule will provide to lower-paid salaried workers.

This new rule not only corrects pay disparities but also establishes clear guidelines for employers regarding overtime compensation. It aims to ensure that workers who exceed 40 hours of work in a week receive appropriate pay or time off, enhancing their economic well-being and work-life balance.