The U.S. Division of Labor (DOL) introduced the ultimate rule for updating the Truthful Labor Requirements Act (FLSA)’s wage stage threshold for extra time eligibility. Efficient January 1, 2023, the minimal wage for extra time eligibility will improve to $684 per week, or $35,568 per yr.
It is a vital improve from the present threshold of $455 per week, or $23,660 per yr. The brand new threshold is greater than double the federal minimal wage of $7.25 per hour.
The Division of Labor’s (DOL) wage threshold for extra time eligibility is the minimal wage stage that staff have to be paid to be exempt from extra time pay necessities. The edge is ready by the DOL’s Truthful Labor Requirements Act (FLSA). As of 2023, the wage threshold is $684 per week, or $35,568 per yr. The DOL has proposed elevating the wage threshold to $1,026 per week, or $53,490 per yr, by 2025.
Elevating the wage threshold would have a number of advantages. First, it will make sure that extra staff are eligible for extra time pay. This may assist to extend their wages and enhance their lifestyle. Second, it will scale back the variety of lawsuits filed by staff who’re misclassified as exempt from extra time pay. Third, it will stage the taking part in subject for companies by making certain that each one employers are topic to the identical extra time pay necessities.
The Honest Labor Requirements Act (FLSA) units a minimal wage and additional time pay necessities for workers in america. The FLSA additionally features a wage threshold that determines which workers are exempt from additional time pay. In 2023, the wage threshold is $684 per week, or $35,568 per yr. The wage threshold is adjusted each few years to maintain tempo with inflation. The following adjustment is scheduled to happen in 2025.
The FLSA wage threshold is vital as a result of it determines which workers are eligible for additional time pay. Staff who’re paid beneath the wage threshold are entitled to additional time pay in the event that they work greater than 40 hours in every week. Staff who’re paid above the wage threshold are usually not eligible for additional time pay, no matter what number of hours they work.
