Overtime pay is required for most U.S. workers who exceed 40 hours per week under the Fair Labor Standards Act (FLSA).
The U.S. Department of Labor’s new overtime rule is set to expand this protection to benefit millions of salaried workers. The new rule, effective July 1, 2024, raises the salary threshold for overtime eligibility.
- Most salaried workers earning less than $844 per week will be eligible for overtime pay starting July 1. This threshold will further increase to $1,128 per week on January 1, 2025.
- For highly compensated employees, the annual salary threshold will rise from $107,432 to $132,964 in 2024, and to $151,164 in 2025. Additionally, these thresholds will be updated every three years starting in 2027.
View a chart on the salary thresholds, and learn about the new overtime rule in this short video.
Have additional questions? Reach out to your IPS representative.