Federal Government Raises Overtime Threshold

The Department of Labor (“DOL”) issued the final rule to increase compensation thresholds for overtime eligibility. According to Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888 and increase to $58,656 on January 1, 2025.

The July 1 increase updates the present annual salary threshold of $35,568 based on the methodology used by the prior administration in the 2019 overtime rule update. On Jan. 1, 2025, the rule’s new methodology takes effect, resulting in the additional increase.  Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels.

“This rule will exponentially increase operating costs for small business restaurant owners who are trying desperately to maintain menu prices for their customers," Sean Kennedy…