
Your practice likely scrambled to prepare for the Department of Labor’s new overtime rule that took effect on July 1, and the overtime threshold amounts were scheduled to change again on January 1. But when a U.S. district court judge overturned the rule in November, the overtime threshold fell back to 2023 levels.
Check out a few key facts your practice must know about how the overtime rule changes will impact you.
The Salary Threshold Is Now $35,568
When the 2024 overtime rule was in effect, staff members who earn below $43,888 were automatically eligible for overtime pay, and your practice was likely preparing for that number to rise to $58,656 on January 1, 2025. But when the judge overturned the rule in November, the overtime threshold went back down to the previous number of $35,568.
This means that you no longer need to pay overtime to employees who earn above $35,568 if they work more than 40 hours each week.
Staff members who earn less than $35,568 are to be treated as non-exempt staff members. Remember that your practice is required to track working hours of all non-exempt employees, so you should be using a system to track that information, such as timesheets, tracking cards, spreadsheets or other methods.
You’ll No Longer Face Increases Every Three Years
As part of the 2024 overtime rule, the minimum threshold for overtime was expected to increase every three years starting in 2027. Much like the increased overtime amount, this aspect of the rule was overturned as well. Therefore, you’ll no longer need to prepare for changes to the threshold every three years.
With the Biden administration no longer in the White House as of January 2025, it’s unlikely that the current administration will appeal the ruling. It remains to be seen whether the Trump administration will change the overtime threshold after taking office in January.
Talk to an Attorney About Changing Salaries
Some practices increased certain staff members’ salaries so they wouldn’t be subject to paying overtime to those staffers. If that’s the case for your practice, talk to an attorney if you’re thinking of lowering their salaries again in light of the new ruling. You don’t want to face lawsuits for reclassifying employees and changing their salaries repeatedly in the same year.
Overtime is just one of the many HR compliance legalities you must master if you want to avoid DOL investigations. Let healthcare employment attorney Bryan Meek, Esq., share the strategies that will help you stay compliant during his online training, Master New 2025 Employment Laws to Head Off Costly Lawsuits. Sign up today! |
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