Learn about overtime rules, FLSA updates, and eligibility for overtime pay to ensure compliance with labor laws.

Why should you pay attention to the new overtime rules coming January 1, 2025?

In July, the Department of Labor changed the overtime threshold from 35,568 dollars to 43,888 dollars. Here is why this is important:

Before July 1, 2024, employees who made less than 35,568 dollars were entitled to overtime pay but with stipulations such as; being salaried and not having a supervising role over anyone. As mentioned earlier, the threshold had been raised to 43,888 dollars

Starting January 1, 2025, the threshold will increase by nearly 35 percent raising the total to 58,656 dollars. PLEASE pay attention to those salaried employees making under that threshold so you know whether they qualify for overtime using the stipulations made in bullet one

for our fellow Texans, READ this bullet. In Texas, the federal court has challenged and suspended this ruling. If you are a business owner, speak with your or a legal team about this as they are best suited to answer any questions you may have.

AVOID a lawsuit, if your business is not in compliance or employees can sue you for wage theft causing a major headache and other ramifications to the business

As the new overtime rules take effect, stay proactive and on top of your business to comply with these changes. By understanding the updated salary thresholds and how they impact your employees, you can avoid costly legal issues and ensure fair compensation. Whether you’re managing a business in Texas or elsewhere, consulting with a legal team can help you navigate these shifts and keep your business running smoothly.