Nacogdoches Chamber Stakeholder Conference Call
sponsored by Burke
"New Overtime Rules" feature presentation
by Dr. Veronica Chimney, Chief Human Resources Officer, Etech Global
Supporting materials provided by Dr. Chimney:
The US Department of Labor has announced a final rule effective July 1, 2024, that will update and revise the regulations governing the exemption of executive, administrative, and professional employees from minimum wage and overtime requirements under the Fair Labor Standards Act. The final rule will significantly change the thresholds that are required for employees to qualify for that exemption. Under the current regulations of the Fair Labor Standards Act, hourly or non-exempt employees who work over 40 hours a week are entitled to overtime compensation.
To be exempt from overtime, a position must meet three criteria:
- Minimum salary threshold: The standard salary level will increase from the current $684 per week (or $35,568 annually). As of July 1, 2024, employees must earn at least $43,888 ($844 per week) to be eligible for overtime. Simply put, effective July 1, The new rule states if an employee earns $43,888 or less on July 1st, they will qualify for overtime pay. This threshold increases to $58,656 ($1,128 per week) on January 1, 2025.
- Salary basis: Employees must be paid on a salary basis as defined by regulations.
- Primary duty test: Each exemption has a specific primary duty test. For example, administrative employees must make twice the state minimum wage and be able to make independent decisions without direct supervision.
Here are some additional sources that may be helpful to you.
https://www.dol.gov/agencies/whd/overtime/rulemaking/faqs#impact18
https://blog.dol.gov/2024/04/23/what-the-new-overtime-rule-means-for-workers
https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime
Great day to each of you.
Please note that I am not a lawyer, and the information provided here is for general informational purposes only. It is not intended to be legal advice. For advice specific to your situation, please consult a qualified legal professional.
Dr. Veronica H. Chimney, EdD
Chief Human Resources Officer
