New Overtime Rules Will Affect Thousands of Minnesotans

WASHINGTON, DC (WJON News) - The U.S. Department of Labor has finalized a rule that will expand overtime to thousands of salaried workers in Minnesota.

Starting July 1st, the rule states:

The annual salary threshold under which salaried workers will be eligible for overtime will be $43,388.
On January 1st, 2025, the threshold will grow to $58,656 per year, a 64% increase from the current level of $35,568 per year.

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U.S. Department of Labor Acting Secretary Julie Su says the new rule strengthens protections for millions of workers nationwide.

This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time. Too often, lower-paid salaried workers are doing the same job as their hourly counterparts but are spending more time away from their families for no additional pay.

The new overtime rules include additional requirements for employers,

To expand overtime protections for lower-paid salaried workers.
Better identify workers who are executive, administrative, or professional and who are thus not eligible for overtime.
Ensure that those employees who are not exempt receive time-and-a-half pay when working more than 40 hours in a week or gain more time off.

Small business groups have threatened legal action against the new rule. After the initial proposal was announced, Beth Milito, the Executive Director of the NFIB’s Small Business Legal Center, said the rules come at a bad time for small businesses.

Small businesses often struggle with the ever-changing nature of federal regulations. The overtime threshold was last increased in 2019, and now is not the time to saddle small businesses with another costly regulation when the small business economy is still recovering. We urge the DOL to consider the economic impact the new requirement would have on small businesses and avoid issuing the rule.

Officials with the Department of Labor say the salary thresholds will be updated every three years based on new wage data.