New Final Overtime Rule Set Forth by the Department of Labor Neal Gerber & Eisenberg LLP

As 2025 progresses, Minimum Wage and Overtime Pay watch for developments in minimum wage and minimum salary requirements closely and review your workplace policies, practices and training to help ensure compliance when changes occur. Some penalties imposed under state and local scheduling laws are similar to “show up” pay or “call-back” pay, and therefore may be excludable from the regular rate. See Fact Sheet #56B for additional information regarding state and local scheduling law penalties.

Criminal investigator exemptions

Such payments may be credited towards overtime compensation due under the FLSA. Overtime pay of not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. Certain exemptions apply to specific types of businesses or specific types of work. No, OT eligible professional staff and UAW-RSE staff are not Legal E-Billing eligible for supervisor-approved partial-day absences. Because these employees are now OT eligible and are paid for their time worked, all missed time must be accounted for by appropriate paid time off. Overtime-eligible professional staff and UAW-RSE staff may flex their schedules within a standard Monday to Sunday workweek, subject to the business needs of the departments in which they work.

Overtime Laws and Regulations

Executives, administrators, and other professionals earning at least $455 per week do not have to be paid overtime under Section 13(a)(1) of the Fair Labor Standards Act. An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work. This fact sheet provides general information concerning the application of the overtime pay provisions of the FLSA .

Age Discrimination in Employment Act

Such schedule flexing does not result in working over 40 hours in a workweek, and therefore would not result in overtime. Some employers provide paid meal breaks when employees are relieved from their work duties. Bona fide meal breaks are not hours worked and these payments do not automatically convert the time to hours worked. The pay for these meal breaks may be excluded from the regular rate, unless an agreement or established practice indicates the parties have treated the time as hours worked, in which case the payments must be included in the regular rate. The challenges of other major Biden-era rules are still pending before the Fifth Circuit, including the appeals of decisions striking down the national noncompete ban and increases in the salary threshold for overtime exemptions.

• In this way, workers such as executive assistants, who were previously lumped together in the exempt category, are now reclassified as exempt or non-exempt based on the actual job functions required for their particular position.
• Before overtime regulations were introduced in 1938, working hours were often exceedingly long and brutal for the average American worker.
• The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.
• It agreed there was a sufficient link between paying a higher minimum wage and the efficiency of the federal procurement system.
• In February 2022, Louisiana, Mississippi, and Texas sued the federal government to challenge Executive Order 14026, which directed federal agencies to pay federal contractors a minimum wage of $15 per hour.

Fair Labor Standards Amendments

Your job must be salaried to fulfill the requirements, and you must spend no more then 20% of your time doing activities that do not fit in the categories described above (or 40% in a retail environment). This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization’s compliance with applicable laws. This fact sheet provides general information regarding the regular rate of pay under the FLSA. On Jan. 1, 2025, the threshold for low-wage workers will rise to $1,128 per week, or $58,656 per year, and the threshold for high wage earners will rise to $151,164 per year.

• In the meantime, however, many states and local jurisdictions have increased their minimum wages.
• The Department’s regulations require executive, administrative, and professional (EAP) employees to be paid at least a minimum salary amount to be exempt from the Fair Labor Standards Act’s minimum wage and overtime requirements under section 13(a)(1).
• Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009.
• The challenges of other major Biden-era rules are still pending before the Fifth Circuit, including the appeals of decisions striking down the national noncompete ban and increases in the salary threshold for overtime exemptions.
• Lawsuits regarding the 2024 final rule are currently pending in two other federal district courts, and the United States has filed a notice of appeal from the November 15 decision.
• Enterprise coverage applies only when the business is involved in interstate commerce and its gross annual business volume is a minimum of $500,000.

In 2008, close to 200,000 employees sucessfully received a total of $140,200,000 (140.2 million dollars) in overtime and minimum wage backwages from their employers as a result of filing an FLSA violation claim. In order to determine if a job is exempt from overtime, the FLSA provides a series of Certified Public Accountant tests to determine the overtime eligibility of an employee based on pay rate, working conditions, skill level, and other factors. Generally, hourly employees who earn under $455 per week ($23,660 per year) and who work in a non-exempt industry are eligible to receive overtime pay. Less controversial changes brought about by the FairPay act included changing the method used to determine overtime exemption from being title-based (in which certain job titles are exempt, regardless of what the workers actually do) to being job-description based. In this way, workers such as executive assistants, who were previously lumped together in the exempt category, are now reclassified as exempt or non-exempt based on the actual job functions required for their particular position.