New Overtime Pay Rules: Here’s What You Need To Know

What Business Owners Need To Know About The New Overtime Rules - The Department of Labor has officially changed overtime rules for employers starting on July 1, 2024. Here’s what you need to know:

Prior to July 1, 2024, you didn’t have to pay employees for overtime if they made more than $35,568 a year. After July 1, 2024, the new rule increases that salary threshold to $43,888. Now, any employees who make $43,888 or less a year will qualify for overtime pay. They must also meet other requirements like being a salaried employee and they’re not supervising anyone.
This number will significantly increase again starting on January 1, 2025. On that day, the salary amount goes up to $58,656. This means that if you have any salary employees who aren’t supervising anyone, their job duties fit the necessary description, and they make less than $58,656 a year, you are going to owe them overtime.
In Texas, a federal court has challenged and suspended this ruling. If you’re a business owner in Texas, it’s recommended that you speak with a labor attorney to make sure your employees are classified the correct way.
Some companies are starting to enact strict overtime rules, while others are adjusting their employee’s status from a salaried worker to hourly worker.
Be sure to comply to these new rules because if you’re not in compliance, your employees could sue your business for wage theft.