New overtime rules could mean higher staffing costs for SWFL businesses

Author: Therese McDevitt, Gulfshore Business
Published: Updated:
Credit: Getty Images

Big changes and potentially higher staffing costs are in store for thousands of businesses and nonprofits in Southwest Florida and around the country if new U.S. Department of Labor overtime rules go into effect as planned July 1.  

The new rule would make millions of currently exempt (salaried) workers eligible for overtime, but legal challenges to be decided early next week could delay or derail the DOL plan. A hearing is scheduled for June 24 in the U.S. District Court Eastern District of Texas regarding two lawsuits, including one brought by Texas Attorney General Ken Paxton. 

The current overtime pay threshold is $684 per week, or $35,568 per year. If the legal challenges are not successful, on July 1 the new rule would mean salaried employees earning less than $844 per week, or $43,888 per year, would be eligible for overtime pay. In January 2025, most salaried employees who make less than $1,128 per week, or $58,656 per year, would become eligible for overtime pay, according to the DOL. The salary threshold would then update every three years. 

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