Source: Douglas Rissing / Getty
NATIONWIDE — The U.S. Department of Labor announced on Wednesday that the threshold for salaried employees’ ability to earn overtime pay would be raised on July 1st of 2024, and again on January 1st, 2025.
The current threshold is set at $35,568. Starting on July 1st that threshold will be raised to $43,888 for the remainder of 2024. Then on January 1st it will be raised again to $58,656. Meaning any employee who makes that much annually will be eligible for overtime pay if they work more than 40 hours a week.
“The Department of Labor is ensuring that lower-paid salaried workers receive their hard-earned pay or get much-deserved time back with their families,” said Wage and Hour Administrator Jessica Looman. “This rule establishes clear, predictable guidance for employers on how to pay employees for overtime hours and provides more economic security to the millions of people working long hours without overtime pay.”
These thresholds will be updated every three years, starting on July 1st, 2027, using up-to-date wage data to determine new salary levels.
By the time the 2025 update is in effect it would have the ability to impact most salaried workers in Indiana. According to the Bureau of Labor Statistics the average annual salary in Indiana is $56,420. That’s a little more than $2,000 below the threshold.
