New labor rule raises salary threshold, affects overtime pay regulations

The U.S. Department of Labor has unveiled a significant update to overtime pay regulations under the Fair Labor Standards Act (FLSA).

This update comes amidst concerns that the previous salary threshold of $684 per week ($35,568 annually) has not kept pace with inflation, leaving many salaried workers vulnerable to long hours without additional compensation.

Effective July 1, the new threshold rose to $844 per week ($43,888 annually), with a further increase to $1,128 per week ($58,656 annually) starting Jan. 1, 2025.

In Indiana, 360,855 extra workers should now be paid for working overtime according to the new federal rule.