2025 Federal Overtime Rule Changes

This past winter, the U.S. District Court for the Eastern District of Texas struck down the Department of Labor’s rule from July 2024. The 2024 rule altered the salary requirement for highly compensated employees who are not eligible for overtime under the Fair Labor Standards Act (FLSA). As a result, starting November 15, 2024, the Department of Labor will revert to enforcing the 2019 rule, restoring the standards to what they were prior to the 2024 updates.

Overtime Final Rule

The Fair Labor Standards Act (FLSA) sets the rules for overtime pay. Employees who are covered by the Act must get paid overtime (at least 1.5 times their regular pay) for any hours worked over 40 in a week unless they’re exempt. For more information about the new rule change and its effects, visit the Department of Labor Overtime Pay Fact Sheet.

Virtual TimeClock for Employee Time Tracking

If this change means you need to monitor exempt and non-exempt employee hours more closely, it might be time to upgrade your time clock system. Virtual TimeClock is a simple, easy-to-use, and powerful time-tracking software for Mac and Windows computers.

Virtual TimeClock is a one-time purchase, saving you hundreds and even thousands compared to cloud-based and subscription-based services. Find out more by visiting the TimeClock Overview page or reaching out to our US-based customer service team. We're here to help!