Talent

Understanding Proposed Changes to Overtime Rules

Published: 
March 12, 2024
Posted by
Ernest "BJ" Beaver

The upcoming changes to the Department of Labor (DOL) overtime rule have sparked considerable interest among employers and employees alike. These changes, set to be finalized in April 2024, represent a significant update to existing regulations governing overtime pay eligibility.

Current Overtime Rule:

According to the U.S. Dept. of Labor (DOL) under the current regulations, the minimum salary required for an employee to be exempt from overtime pay obligations under the Fair Labor Standards Act (FLSA) stands at $684 per week, or $35,568 annually. Additionally, Highly Compensated Employees (HCEs) must earn at least $107,432 annually, with a weekly salary of at least $684.

Proposed Overtime Rule:

The proposed DOL overtime rule seeks to raise the minimum salary thresholds for exemption significantly. If enacted, the new rule would increase the minimum salary for exempt employees to $1,059 per week, or $55,068 annually. Furthermore, HCEs would see their annual compensation requirement rise to $143,988, with a weekly salary of at least $1,059.

A notable change from the current rule is the introduction of automatic updates to the salary levels and HCE compensation thresholds every three years.

Implications for Employers:

For employers, these proposed changes necessitate careful review and adjustment of compensation practices. Compliance with the updated regulations is essential to avoid legal repercussions. Employers must assess the impact of the new thresholds on their workforce and make necessary adjustments to ensure compliance.

As the proposed changes to the DOL overtime rule approach, employers and employees must prepare for the potential impact. By understanding the implications of the proposed revisions and taking proactive steps to ensure compliance, stakeholders can navigate the transition effectively. Additional information on the proposed changes can be found at dol.gov. 

About Partnership Grand Strand
Partnership Grand Strand is a 501c3 foundation launched in 2022 by the Myrtle Beach Area Chamber of Commerce to fund a five-year economic and community development initiative. Through investments from local businesses and partnerships with community organizations, the foundation leads and supports efforts related to four pillars of success: prosperity, talent, place and infrastructure. Through their focused endeavors, Partnership Grand Strand works to accelerate economic prosperity and enhance quality of life across Horry and Georgetown counties. 
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram