Starting January 1, 2025, the Department of Labor (DOL) is planning to raise the minimum salary required to qualify for exemption from overtime pay from $43,888 per year to $58,656 per year. Unless this rule is overturned, this weekly wage requirement will increase to $1,128 per week. Therefore, if you’re working over 40 hours a week and are not receiving at least $844 per week, there is a chance your employer is not complying with the law.
Under the FLSA, the Department of Labor can set a minimum salary for employees to qualify for exemptions. While various courts have pushed back on this authority, the DOL has already increased the salary requirement in July 2024 and is planning to increase it again. It is foreseeable that this increase may be challenged by legal obstacles since judges have already perceived this increase to stray away from the original FLSA framework. However, the possibility of this increase represents a shift in compensation to ensure that more people are eligible for overtime pay. Employers should be aware of this potential change so that they can ensure they are providing their employees with accurate compensation to avoid any legal disputes. As an employee, it is important to be informed as these changes can directly impact your paycheck.
How to Take Action if You Are Being Underpaid
If you believe that you have not been paid adequately for your overtime work according to the DOL rule, you may be able to get this money back, especially given the raise in salary requirement. For instance, if you have been earning less than the new salary requirement but have been working more than 40 hours per week, you may be eligible for overtime compensation even if you were exempt previously. It is important for you to review your paychecks and timecards to uncover any possible gaps in compensation, especially since this adjustment can change your employee classification.
Given the complexity of these changes, it is important to be thorough in reviewing your paychecks and compensation. While these changes are scheduled to occur in the new year, legal pushback could delay the implementation of the new DOL rule. Navigating the logistics and uncertainty of this change can be understandably confusing. If you are unsure if you have been paid correctly, you can submit your paycheck statements to us here at Feldman Legal Group. We provide free reviews of your pay and compensation for compliance with the Fair Labor Standards Act (FLSA). Call now to discuss your legal options.
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