Department of Labor – Overtime Rules – Jan 2025

New Overtime Rules for 2025

Overview

Starting January 1, 2025, the U.S. Department of Labor will implement new overtime rules to ensure fair compensation for employees working more than 40 hours per week. These rules significantly change salary thresholds and expand overtime protections.

Key Points

1. Increased Salary Threshold
   • New Threshold: Salaried workers earning less than $58,656 annually will be eligible for overtime pay.
   • Effective Date: January 1, 2025.
2. Automatic Updates
   • Frequency: Salary thresholds will be updated automatically every three years.
   • Purpose: To ensure the thresholds keep pace with wage growth and economic changes.
3. Expanded Protections
   • Target Group: Lower-paid salaried workers.
   • Impact: Ensures these workers receive fair compensation for overtime work.
4. Highly Compensated Employees
   • Updated Threshold: The rule also includes updates for thresholds specific to highly compensated employees, offering additional protections.

Purpose and Benefits

• Strengthening Worker Protections: The new rules aim to provide better compensation for overtime work, particularly for lower-paid salaried workers.
• Ensuring Fair Pay: The rules ensure that worker compensation remains fair and relevant to current economic conditions by automatically updating salary thresholds.

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