How the New Overtime Rule Expands Eligibility for Overtime Pay

July 2024 Federal and state laws guarantee the right of most workers to receive overtime pay when they work more than 40 hours a week. The Fair Labor Standards Act (FLSA) sets a minimum requirement for overtime pay nationwide. It includes multiple exemptions from the overtime requirement, including one for individuals working in “a bona fide executive, administrative, or professional capacity.” Known as the “EAP exemption,” this provision excludes many salaried employees from overtime eligibility based, in part, on income above a threshold amount. The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) has increased the EAP threshold over the years to account for cost-of-living increases, but it has not done so for some time until now. A new overtime rule issued by the WHD in April 2024 raises the EAP threshold, expanding eligibility for overtime pay. The rule takes effect on July 1, 2024. View the full article here.