New Overtime Rule Went Into Effect July 1

You may have heard that the Department of Labor (DOL) released its final overtime rule in April.

This new rule significantly increases the minimum annual salary threshold determining overtime pay eligibility under the Fair Labor Standards Act (FLSA) from $35,568 to $58,656. 

• The rule will gradually come into effect, with an increase to $43,888 which started on July 1, 2024
• There will be an increase to $58,656 effective January 1, 2025

Legal Appeal News 
The National Restaurant Association Restaurant Law Center filed a lawsuit against the rule in May asking for a temporary restraining order. The court decision came through on Friday, June 28, 2024 and unfortunately the court did not rule in their favor. Restaurant Law Center staff are analyzing additional legal options. More updates will follow.
 
What Restaurants Should Do Now
The Wisconsin Restaurant Association and the National Restaurant Association recommend that restaurants do the following to ensure that they are in compliance with this rule:

• Review job duties: Ensure employees are correctly classified as exempt or non-exempt based on their job duties. This DOL fact sheet provides guidance on determining exempt status.
• Review payroll records: Identify salaried exempt employees with wages below the new threshold. For these employees, consider 1) raising their salary above the new limit or 2) changing their status to non-exempt and properly tracking hours to pay overtime when appropriate.
• Consult counsel: Consult with an employment attorney licensed in your state to determine how best to comply with the rule and all applicable state and local rules.

​For more information, check out these resources: DOL: Final Rule on Overtime Protections, DOL: Final Rule Webinar, DOL: Earnings Threshold Chart, DOL: Small Business Compliance Guide, DOL: Final Rule FAQ
 
Questions? Email or call the AskWRA Team at 608.270.9950

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