The Department of Labor’s (DOL) overtime rule, finalized in 2016 and set to take effect in 2025, revises the Fair Labor Standards Act’s (FLSA) overtime pay requirements. The new rule updates the salary and compensation levels that determine which employees are eligible for overtime pay. It also clarifies the duties that qualify employees for exemption from overtime pay. By expanding overtime eligibility to more workers and clarifying overtime rules, the DOL aims to ensure fair pay and improve working conditions for American employees.
The DOL overtime rule is significant because it extends overtime protections to millions of additional workers. Under the new rule, employees earning up to $684 per week ($35,568 per year) will be eligible for overtime pay. This represents a substantial increase from the previous salary threshold of $455 per week ($23,660 per year). The rule also clarifies the duties that exempt employees from overtime pay, ensuring that only those performing truly executive, administrative, or professional duties are exempt.
