July 01, 2024

DOL’s Overtime Rule Takes Effect with One Exception

As of this writing, the U.S. Department of Labor’s final overtime rule HAS taken effect with one exception. The rule has been blocked or enjoined as applied to the state of Texas as an employer; any employees of that state will not be impacted.

Any other employees whose guaranteed minimum salary is not at least $844 per week may need to be converted to non-exempt and paid overtime for every hour they work over 40 in a workweek.

What’s next? There are at least two other cases pending. Now, wait for those decisions to be issued and either undo what you have done or leave things as they are. If the rule remains in effect, the next bump will be on January 1, 2025, when the minimum salary threshold will increase to $1,128.

Options? If you do need to convert an exempt employee to non-exempt, there are several ways you can do that. Check out this FREE webcast for a high-level discussion of those and more. You can also access FiveL’s FREE webcast that covered the basics of the new rule plus several others. In the interim, stay tuned!