Company Blog
Overtime Rule Change for Salaried Employees
Recently the U.S. Department of Labor (DOL) published a final rule affecting overtime eligibility for salaried employees. Effective July 1, 2024, salaried employees who make less than $43,888 annually may no longer meet the requirements for exempt status. Making them eligible for overtime pay. On January 1, 2025, this will also apply to most salaried workers making less than $58,656 annually.
Overtime Final Rule
| Effective Date | Standard Salary Level | Full-year Salary Level |
| July 1, 2024 | $844/week | $43,888/year |
| January 1, 2025 | 1,128/week | $58,656/year |
This new rule will also raise the total annual compensation requirement for highly compensated employees who do not qualify for overtime pay under the FLSA. The current threshold of $107,432 per year will increase to $132,964 per year on July 1, 2024, and then to $151,164 per year on Jan. 1, 2025. For more information about this new rule please visit the U.S. Department of Labor's website.
Tracking Employee Hours With Virtual TimeClock
This update to the federal overtime law could mean that you will need to track employee time more closely. Virtual TimeClock is powerful, easy-to-use desktop time tracking software for your Mac and Windows computers.
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