New Overtime Rule Will Cost Employers and Workers
Nam Newsroom
April 25, 2024
A new final overtime rule from the U.S. Department of Labor will reduce flexibility for employees and could force manufacturers to make difficult choices about their workforces, the NAM said Tuesday.
What’s going on: The new regulation “changes the salary threshold used to determine whether a worker is exempt from overtime pay” so that, beginning Jan. 1, 2025, most employees earning less than $58,656 will be owed time-and-a-half wages for hours worked over 40 in a single workweek (Bloomberg Law, subscription).
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The current salary threshold is $35,568.
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The new rule will go into effect July 1, following publication in the Federal Register.
Why it’s problematic: The change promises to present significant challenges to employers and employees alike.
