New Overtime Final Rule Published

​​Why this matters: The distinction between ‘salaried’ and ‘hourly’ employees will change and could impact nonprofit workforce overtime pay.

The final rule, set to start going into effect on July 1, 2024, increases the minimum salary level that hourly employees must be paid to exempt them from overtime pay (time and half of wages for hours worked in excess of 40 in any week).

• Old Rule Adjusted: On July 1, 2024, the standard salary threshold goes up to $844 per week/$43,888 per year (from the current level of $684 per week/$35,568 per year). This is essentially an inflation adjustment of the level set in 2019.
• New Rule Implemented: On January 1, 2025, the salary level then goes up again to $1,128 per week or $58,656 per year.
• Beginning July 1, 2027, the salary threshold will be automatically adjusted for inflation every three years.

For a full break down on nonprofit impact, please see the linked analysis from our partners at the National Council of Nonprofits.

We will continue to monitor the developments on this issue and update you with more information when necessary. 

Read full analysis on nonprofit impact