The U.S. Department of Labor (DOL) released a new overtime rule that went into effect July 1, 2024. The rule raises the salary threshold for overtime pay eligibility, adding burdensome requirements for small business owners.
The current threshold for salaried workers eligible for overtime pay is set for those making less than $35,568 annually. On July 1, the threshold rose, expanding eligibility for salaried employees earning less than $43,888. At the start of 2025, the threshold increases again to include those making less than $58,656. All salaried employees under these thresholds working more than 40 hours in a single week are eligible for overtime pay.
The rule further states the eligibility threshold is subject to change every three years. NFIB opposed this rule and has filed a lawsuit challenging it.
