In a move aimed at bolstering worker protections nationwide, the U.S. Department of Labor has unveiled a significant update to overtime pay regulations under the Fair Labor Standards Act (FLSA), according to a report from personal injury law firm Bisnar Chase. This update comes amidst concerns that the previous salary threshold of $684 per week ($35,568 annually) has not kept pace with inflation, leaving many salaried workers vulnerable to long hours without additional compensation.
Effective July 1, 2024, the new threshold will rise to $844 per week ($43,888 annually), with a further increase to $1,128 per week ($58,656 annually) starting Jan. 1, 2025. These adjustments, phased in over the next few years, are designed to align more closely with current wage trends and economic realities.
A recent analysis by Bisnar Chase sheds light on the impact of these changes. Using data from the U.S. Bureau of Labor Statistics, they identified that a whopping 17 million workers will now become eligible for overtime pay under the updated thresholds. In Wisconsin, 334,114 extra workers should now be paid for working overtime.
The final rule is projected to redirect approximately $1.5 billion annually from employers to workers through increased pay.
