FLSA Overtime Threshold Changes and the Effect on Your Clients
The Department of Labor's final overtime rule, effective July 1, 2024, raises the salary thresholds for exempt executive, professional, outside sales, and computer employees under the FLSA, requiring employers to either reclassify affected employees as non-exempt with overtime pay or increase their salaries, and necessitating proper time tracking solutions like WorkforceHub to ensure compliance.
The Department of Labor (DOL) recently announced its final overtime rule, titled Defining and Delimiting the Exemptions for Executive, Professional, Outside Sales, and Computer Employees. It revises existing regulations under the Fair Labor Standards Act (FLSA), potentially impacting many clients with employees classified as exempt. Some changes to the overtime threshold are going into effect as soon as July 1, 2024.
The FLSA Overtime Threshold
Under the FLSA, certain employees must be paid overtime for all hours worked beyond 40 in a workweek. However, the law includes exemptions, known as “white collar” exemptions. Employees in specific executive, administrative, or professional roles, performing the corresponding duties and earning above a certain threshold, are not required to be paid overtime. Highly compensated employees (HCEs) have a separate threshold that is an exemption to the final rule requirements.
How to Help Your Clients
It's important to assess which clients might be impacted by this change and provide appropriate support. Clients may need to consult with an attorney to determine the best strategy for ensuring compliance with the updated overtime threshold.
Impacted employers can determine the right strategy to comply with the updated salary minimum. The two main options include:
- Reclassifying employees as non-exempt and providing overtime pay for all hours over 40 in a workweek
- Increasing the salaries of exempt employees who fall below the updated minimum
Tracking Employee Time
Clients who opt to reclassify employees will need to ensure those individuals are set up for proper time tracking. Make sure your clients have access to WorkforceHub, a solution that simplifies employee timekeeping for employees in all situations.
If you’re not currently a Swipeclock partner, explore how you can become one and provide this user-friendly and intuitive platform to your clients who need to track employee time.
Help your clients remain compliant with the DOL final rule, along with other time and labor regulations, with WorkforceHub.
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New Mexico Overtime Laws - WorkforceHub
New Mexico adheres to the federal Fair Labor Standards Act (FLSA) for overtime laws, requiring employers to pay 1.5 times the regular rate for hours worked over 40 per week to non-exempt employees—including certain salaried workers who do not meet exemption criteria—and while employers can mandate overtime, they must compensate employees accordingly.
Arizona Overtime Laws - WorkforceHub
Arizona follows federal Fair Labor Standards Act (FLSA) overtime laws, requiring non-exempt employees—including hourly workers and salaried employees who do not meet exemption criteria such as earning at least $684 per week and performing executive, administrative, or professional duties—to be paid 1.5 times their regular rate for hours worked over 40 in a workweek, and employers can mandate overtime work but must compensate accordingly.
Alabama Minimum Wage Laws - WorkforceHub
Alabama does not have its own minimum wage laws and instead follows the federal minimum wage of $7.25 per hour set in 2009, with no state or local variations, automatic annual increases, or industry-specific rates, and no scheduled updates unless federal or state legislation changes.
Wyoming Overtime Laws - WorkforceHub
Wyoming adheres to federal Fair Labor Standards Act (FLSA) overtime laws without additional state-specific rules, requiring employers to pay non-exempt employees, including certain salaried workers who do not meet exemption criteria, 1.5 times their regular pay for hours worked over 40 in a workweek, and allowing employers to mandate overtime while ensuring proper compensation.
Nebraska Overtime Laws - WorkforceHub
Nebraska follows federal Fair Labor Standards Act (FLSA) overtime laws without additional state-specific rules, requiring employers to pay non-exempt employees, including certain salaried workers who do not meet exemption criteria, 1.5 times their regular pay for hours worked over 40 per week, allowing employers to mandate overtime without a maximum hour limit as long as proper overtime compensation is provided.