Overtime pay regulations help prevent employers from taking advantage of workers. By limiting how much companies can require from workers at a base level of pay, the government prevents abusive employment practices that could endanger people’s finances or their health.
Hourly workers can qualify for overtime pay if they have to work for more than 40 hours in a particular work week. People often talk about salaried employees as though they are exempt. They frequently are. However, not all salary employees are actually exempt from overtime pay rules.
Many of them potentially have a right to receive overtime wages. Employers count on their lack of familiarity with the law when they take advantage of salaried workers who are not exempt. The pool of workers who are eligible for overtime despite receiving salary pay is about to expand substantially.
The minimum salary for overtime exemption increased
For almost half a decade, the minimum salary for overtime exemption remained stagnant. Companies only had to pay $35,568 annually to bypass overtime pay regulations. They could demand that workers put in multiple hours of overtime per week without any additional compensation. The excess time worked could drive down someone’s hourly wages, leading to them receiving an unsustainable hourly income.
Thankfully, the minimum salary required by federal law to bypass overtime wages has recently changed. As of July 1st, 2024, the minimum salary increased to $43,888. It increases again at the beginning of 2025. After the new year begins, any worker who receives less than $58,656 might be eligible for overtime pay.
Some workers may see a boost in their base salary as companies make strategic moves to remain compliant with the law. Other workers may start receiving overtime wages for excess time worked. They may also see a reduction in how many hours their employers schedule them to work.
In cases where companies violate the rights of workers by insisting they work overtime without paying them appropriately, it may be necessary to file a civil lawsuit. Pursuing a wage and hour claim can potentially compensate workers for unpaid overtime that they deserve.
