New ‘white collar’ overtime rule: What employers need to know now

Last week in an EmployerLINC Alert, “Millions more U.S. workers to be eligible for overtime under final DOL rule,” McAfee & Taft employment lawyer Kristin Simpsen advised employers about the U.S. Department of Labor issuing its final rule that raises the salary threshold for exempt employees once again. The new requirements go into effect July 1, 2024, with another jump in the salary threshold six months later, effective January 1, 2025, with built-in future updates every three years beginning July 1 2027, that apply up-to-date wage data to determine new salary minimum thresholds.

In this LINC video alert, McAfee & Taft employment lawyers Paul Ross and Natalie Ramsey take a closer look at these new rules to help employers navigate what exactly has changed under the new regulations, what hasn’t changed and why that’s important, and recommendations for action steps employers need to be taking now to prepare for the impending deadline. They also review the history of legal challenges to similar salary threshold requirements, what the courts have had to say since, and what most experts expect to happen with the latest DOL final rule.