NSBA is closely tracking overtime rule developments for impacts and effects on small business. Â
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In the last week of April 2024, the Department of Labor (DOL) released its final rule on Overtime Regulations which will have significant implications across various industries, particularly in terms of labor costs and workforce management.Â
Technically, this new standard affects eligibility criteria for overtime pay under the Fair Labor Standards Act (FLSA), outlining new criteria for determining which employees are exempt from receiving overtime pay. Â
Those typically exempt from overtime rules include executive, administrative, professional, and other roles often referred to as "white-collar" positions; however, by the DOL’s new rule, the salary threshold determining overtime eligibility or exclusion will change:  Â
On July 1, 2024, this salary threshold will be raised to $43,888 and increase to $58,656 on Jan. 1, 2025.  Starting July 1, 2027, salary thresholds will update every three years, based on wage data and economic adjustments. Â
NSBA stands with small-business owners and understands different regulations affect various enterprises in different ways. Federal legal challenges will likely be filed by the business community, including challenges to the new rule related to the triannual automatic adjustments. Â
Follow NSBA as we continue monitoring developments related to the new overtime rule. Â