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Are You Eligible for Overtime Pay? Understanding Your Status Under the FLSA

Updated: May 15

Big news from the Department of Labor on April 23, 2024!

The latest rule change is shaking things up by increasing the salary thresholds for overtime exemptions under the Federal Fair Labor Standards Act (FLSA).

This pivotal update means approximately 4 million employees will no longer be exempt—opening the door to overtime pay they previously didn't qualify for.

Employers are now faced with a choice: boost salaries to keep these exemptions, or switch to paying these workers by the hour, including overtime when necessary.

Stay informed and check if these changes could mean more money in your paycheck!

Here's the breakdown of what the new rules mean for individuals in the workforce:

What's Happening?

  • The U.S. government has updated the rules about who can be exempt from earning overtime.

  • This mainly affects salaried workers.

Why Does It Matter?

  • About 4 million people who were not eligible for overtime before might now start getting paid extra if they work more than 40 hours a week.

  • This is because the salary limits for exemption have been raised.

What is the FLSA?

  • The Fair Labor Standards Act (FLSA) is a law that sets minimum wage and overtime pay standards in the U.S. It requires that employees be paid at least time and a half (1.5 times their regular pay rate) for overtime hours.

Who Is Affected by the New Rule?

  • The changes impact positions that are classified as executive, administrative, professional, and highly compensated employees.

  • These are common types of jobs that might not have received overtime before if they earned over a certain amount.

What Were the OLD Salary Limits?

  • Previously, employees with a salary of at least $684 per week (or $35,568 per year) could be exempt from overtime.

  • For highly compensated employees, the exemption limit was $107,432 per year.

What Are the NEW Salary Limits?

  • From July 1, 2024, the salary threshold will increase to $844 per week ($43,888 per year) for standard exempt positions.

  • For highly compensated employees, it will rise to $132,964 per year.

  • From January 1, 2025, these thresholds will increase again to $1,128 per week ($58,656 per year) for standard exempt positions, and $151,164 per year for highly compensated employees.

Future Changes:

  • Starting July 1, 2027, and every three years after that, these salary thresholds will be updated based on wage growth patterns.


This means if you are in one of these jobs and earn less than the amounts specified, you may now be eligible for overtime pay if you work more than 40 hours in a week.

If you earn more than these amounts, your employer might still classify you as exempt from overtime.


Employers have the option to raise salaries to maintain exemption status or reclassify positions to non-exempt, meaning such employees would then be eligible for overtime.

It's best to familiarize yourself with these changes and what they mean to you and your organization. Please reach out ( at any time if you need assistance! 😉


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