{"id":46717,"date":"2024-04-25T13:11:52","date_gmt":"2024-04-25T13:11:52","guid":{"rendered":"https:\/\/www.atlantictraining.com\/blog\/?p=46717"},"modified":"2025-11-14T16:48:19","modified_gmt":"2025-11-14T21:48:19","slug":"new-overtime-rule-compliance-guide","status":"publish","type":"post","link":"https:\/\/www.atlantictraining.com\/blog\/new-overtime-rule-compliance-guide\/","title":{"rendered":"How the New Overtime Rule Affects You and What to Do to Stay Compliant"},"content":{"rendered":"

Let’s talk about the new overtime rule<\/strong>. The Department of Labor has finalized changes that are a *massive* deal for millions of workers and their employers. This isn’t a “maybe” situation; it’s happening, and the deadlines are coming fast. If you’re wondering how the new overtime rule<\/strong> affects you and what to do to stay compliant, you’re in the right place. Let’s get to it.<\/p>\n

Update on the New Overtime Rule: Finalized Changes to Take Effect in 2024<\/strong><\/h2>\n

In an announcement from the Biden-Harris administration<\/a>, the finalization of the new overtime rule marks a significant milestone in the protection of workers’ rights in the United States. Effective from July 1, 2024<\/strong>, the salary threshold for overtime eligibility will see a substantial increase to $43,888 annually<\/strong>, ensuring that millions more lower-paid salaried workers are compensated for their overtime hours. This change updates the current threshold of $35,568 set by the previous administration.<\/p>\n

Further adjustments are set to take place on January 1, 2025<\/strong>, when the threshold will rise to $58,656<\/strong>. This increase aligns with the administration’s commitment to ensuring that workers are fairly compensated for their time. Additionally, this rule introduces a significant reform for highly compensated employees, with planned regular updates every three years starting from July 1, 2027. These updates will utilize the most current wage data to set new salary levels.<\/p>\n

Acting Secretary of Labor, Julie Su, emphasized the rule’s role in restoring the fundamental promise that working over 40 hours a week should rightfully result in higher pay. For businesses, this means revisiting payroll structures and possibly reclassifying employees to ensure compliance. It’s more crucial than ever to stay informed and prepared for these changes.<\/p>\n

The new overtime protections could boost pay for millions.<\/h2>\n

In a significant development for the U.S. workforce, the Department of Labor (DOL) has introduced a proposal designed to extend and restore overtime protections to an estimated 3.6 million salaried employees who earn below a specified threshold. The rule would guarantee overtime pay for most salaried workers earning less than $1,059 per week, about $55,000 per year. This move not only seeks to uphold the principle of fair compensation for extended hours but also aims to adjust outdated compliance thresholds to reflect current economic realities.<\/p>\n

Let\u2019s take a fresh look at overtime rules and what they mean for today’s workforce.<\/h2>\n

For over eight decades, the cornerstone of American labor rights has been the 40-hour workweek. As the workplace evolves, so too must the regulations that govern it. The updated rule from the DOL marks a critical step in acknowledging the hard work of low-paid salaried workers. With the ongoing discussions and the rule’s impending formalization, it\u2019s crucial for employers and HR professionals to understand not just the letter of the law but its spirit as well. Acting Secretary of Labor Julie Su emphasizes<\/a> this as a move towards enhancing workers’ economic security, aligning with the broader goals of the administration to foster a more equitable labor market.<\/p>\n

How will It impact your business and payroll?<\/h2>\n

While the proposed changes promise enhanced protections for workers, they also pose a significant operational challenge for many businesses. Employers will need to carefully review their payroll structures and possibly reconsider how they classify employees. The increase in the salary threshold for exempt employees means that many who were previously ineligible for overtime will now qualify, potentially leading to increased payroll expenses.<\/p>\n

For businesses in states with already higher minimum salaries for exemption, such as California and New York, the impact might be less pronounced. However, for the majority, this will necessitate a comprehensive audit of employment practices and payroll processes. The rule’s provision for automatic updates every three years adds another layer of complexity, emphasizing the need for ongoing compliance vigilance.<\/p>\n

Employers can stay ahead by strategically training their teams to master this new compliance landscape.<\/h2>\n

Atlantic Training recognizes the challenges and opportunities these changes represent. To navigate this new regulatory landscape effectively, companies must not only adjust their payroll practices but also ensure that their management teams are equipped to handle these changes through comprehensive training. The following are some possible operational areas you\u2019ll want to optimize.<\/p>\n

FLSA Compliance Training<\/h3>\n

Understanding the intricacies of the Fair Labor Standards Act (FLSA) is more crucial than ever. You\u2019ll want a FLSA Compliance Training Course<\/a> designed to help employers and HR professionals grasp the essentials of wage standards, overtime requirements, and other critical compliance aspects.<\/p>\n

Time Management Training<\/h3>\n

With the introduction of new overtime rules, managing work hours becomes pivotal. A Time Management Training Course<\/a> enables employees and managers alike to optimize their schedules and priorities, ensuring productivity remains high without necessitating excessive overtime.<\/p>\n

Managerial Training<\/h3>\n

Managers need to be particularly adept at navigating these changes. They must understand not only the legal requirements of the new overtime rule<\/strong> but also the nuances of managing a potentially larger group of overtime-eligible employees. Training in areas such as goal setting, effective communication, and leadership can be invaluable.<\/p>\n

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Frequently Asked Questions About the New Overtime Rule<\/h2>\n

What is the new overtime rule for 2024 and 2025?<\/h3>\n

The new overtime rule<\/strong> increases the minimum salary threshold for exempt employees. Starting July 1, 2024, the threshold rises to $43,888\/year. On January 1, 2025, it rises again to $58,656\/year. Employees earning less than these amounts are generally eligible for overtime pay.<\/p>\n

Who qualifies for overtime under the new rule?<\/h3>\n

Most salaried workers who earn less than the new thresholds ($43,888 in 2024 and $58,656 in 2025) and work more than 40 hours a week will qualify for overtime. This primarily affects “white-collar” employees in executive, administrative, and professional roles.<\/p>\n

How can employers prepare for the new overtime rule?<\/h3>\n

Employers should immediately audit their payroll to identify all salaried employees earning less than $58,656. Then, they must decide whether to raise those employees’ salaries to the new threshold or reclassify them as non-exempt and begin paying them overtime for any hours worked over 40.<\/p>\n

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Atlantic Training is here to help you stay compliant, with flexible training options.<\/h2>\n

The update to the federal overtime rule represents a significant shift in how businesses will manage and compensate their employees. While it presents challenges, it also offers an opportunity to revisit and improve workplace practices. Atlantic Training is here to help organizations transition smoothly with effective training that ensures both compliance and enhanced productivity.<\/a> By preparing now, businesses can turn a regulatory requirement into a strategic advantage, fostering a more engaged and motivated workforce.<\/p>\n","protected":false},"excerpt":{"rendered":"

Let’s talk about the new overtime rule. The Department of Labor has finalized changes that are a *massive* deal for millions of workers and their employers. This isn’t a “maybe” situation; it’s happening, and the deadlines are coming fast. If you’re wondering how the new overtime rule affects you and what to do to stay …<\/p>\n","protected":false},"author":36,"featured_media":46719,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[171,4042],"tags":[406,779,877,1864,4047],"class_list":["post-46717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-online-training","category-soft-skills","tag-compliance","tag-employee-overtime","tag-excessive-overtime","tag-online-training-videos","tag-soft-skills"],"_links":{"self":[{"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/posts\/46717","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/comments?post=46717"}],"version-history":[{"count":5,"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/posts\/46717\/revisions"}],"predecessor-version":[{"id":62945,"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/posts\/46717\/revisions\/62945"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/media\/46719"}],"wp:attachment":[{"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/media?parent=46717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/categories?post=46717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.atlantictraining.com\/blog\/wp-json\/wp\/v2\/tags?post=46717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}