What to Know About the Department of Labor’s Proposed Overtime Regulation

On April 11, 2024, the White House Office of Information and Regulatory Affairs (OIRA) announced that it has concluded its review and has approved the Department of Labor’s (DOL) proposed new overtime rule increasing the minimum weekly salary for exempt employees. The DOL’s proposed overtime regulation extends overtime protections to 3.6 million salaried workers who currently earn at least $684 but less than $1,059 per week. The regulation guarantees overtime payment for most salaried workers who earn less than $55,068 per year. These overtime protections will apply to the standard salary level of workers in all U.S. territories including Puerto Rico, Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands. Additionally, the regulation implements automatic increases to the overtime salary threshold every three years.

The final rule is expected to go into effect within the next 30 days. In the meantime, employers should carefully consider and identify which salaried employees will be impacted by the proposed, decide whether their businesses are best served by increasing the salaries of affected employees or implementing procedures to track and pay them overtime, and develop a communication plan to announce the both the new regulation and the employer’s plan to ensure compliance.

This summary is provided for informational purposes only and is not intended to constitute legal advice nor does it create an attorney-client relationship with Rimon, P.C. or its affiliates.

Courtney M. Roman, Esq. is an associate at Rimon, where she practices in the areas of bankruptcy and creditors’ rights, corporate restructuring, labor and employment and litigation. In May of 2022, Courtney received her Juris Doctor from New York Law School. Prior to attending law school, Courtney received her undergraduate degree in English in 2018 from Binghamton University. During law school, Courtney served as a member of the Family Law Quarterly. Read more here.