By Shane Monto
We’ve got some important news to share about changes in overtime rules that might affect your business. Let’s break it down, shall we?
Big Changes Are Here
The U.S. Department of Labor has dropped a major final rule: they raised the salary threshold for overtime exemption. In plain English? More of your employees may be eligible for overtime pay.
What’s Changing and When?
July 1, 2024: The First Wave
Starting July 1, 2024, the new salary threshold will be $43,888 per year (that’s $844 per week). If you’ve got employees earning less than this, they’ll need to be paid overtime if they work more than 40 hours in a week.
January 1, 2025: The Second Wave
But wait, there’s more! On January 1, 2025, the threshold jumps again to $58,656 per year ($1,128 per week).
What Does This Mean for You?
1. Review your payroll: Take a look at who’s making less than these new thresholds.
2. Plan ahead: You might need to adjust salaries or rethink how you manage overtime.
3. Stay compliant: Make sure you’re ready to pay overtime to newly eligible employees.
We’re Here to Help
Feeling overwhelmed? Don’t worry! That’s what we’re here for. We can help you manage these changes and make sure your business stays compliant.
HPay is a payroll company that serves Harper & Company clients exclusively. Questions about how to ensure that your payroll is compliant with these new standards? Feel free to email me directly anytime at smonto@harpercpaplus.com
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