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DOL Overtime Rule Will Exacerbate Workforce Crisis

The Department of Labor’s Wage and Hour Division announced its final overtime rule last week, which raises the minimum salary used to determine whether a worker is exempt from overtime pay, increasing workforce costs and reducing flexibility at a time of high inflation and ongoing workforce shortages.

Starting July 1, the minimum salary for workers to be exempt from overtime pay will rise from $684 per week ($35,568 annually) to $844 per week ($43,888 annually). By Jan. 1, 2025, it will further increase to $1,128 per week ($58,656 annually), with the threshold increasing automatically every three years. Most employees earning less than the threshold will be owed time-and-a-half wages for more than 40 hours worked in a single workweek.

Questions?  Please contact NPGA President and CEO Stephen Kaminski.