Labor Department Finalizes New Overtime Salary Requirements

Labor
Published
Contact: Brad Mannion
[email protected]
Director, Labor, Health & Safety
(202) 266-8265

The U.S. Department of Labor (DOL) issued a final rule significantly increasing the salary level for determining overtime pay requirements for certain salaried employees.

Effective July 1, 2024, the salary threshold will increase the annual salary level from $35,568 to $43,888, and then to $58,656 on Jan. 1, 2025, marking a nearly 65% increase from the current salary threshold.

Additionally, beginning July 1, 2027, salary levels will update every three years using up-to-date wage data.

Under the Fair Labor Standards Act, salaried workers classified as executive, administrative, professional, outside sales and computer employees are exempt from overtime pay requirements if a worker earns at or above a defined salary level called the “standard salary.” Under the final rule, salaried workers — which often include construction supervisors — earning less than the finalized standard salary levels per year will be eligible to receive the standard overtime rate for hours worked over 40 in a workweek.

NAHB submitted comments when DOL issued the proposed rule in late 2023, citing the negative impact such a significant increase would have on housing affordability, among other concerns. Additionally, during multiple DOL listening sessions, NAHB members questioned the timing of a salary level update, as the latest update went into effect less than five years ago.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Sustainability and Green Building

Apr 30, 2025

NAHB Mourns Passing of Member Kim Shanahan

NAHB mourns the passing of Kim Shanahan, who played an integral role in the Sustainability & Green Building Subcommittee and Healthier Homes and Communities Subcommittee.

Awards | Sustainability and Green Building

Apr 30, 2025

Global Innovation Home of the Year Brings Wellness to Production Home Design

ERTH360, a home design and architecture firm based in Ontario, has spent years focused on bringing wellness concepts to production home design. Its design won the Gold award for GIA Global Innovation Home of Year at NAHB’s The Nationals for 2024.

View all

Latest Economic News

Economics

Apr 30, 2025

U.S. Economy Contracted in First Quarter of 2025

The U.S. economy contracted in the first quarter of 2025 for the first time in three years, driven by a sharp surge in pre-tariff imports, softening consumer spending, and a decline in government spending.

Economics

Apr 30, 2025

House Sharing is Not Just for Young Adults

A record-high 6.8 million households shared their housing with unrelated housemates, roommates or boarders in 2023. While college-age and young adults make up the largest subset of house sharers (close to 41%), this type of living arrangement is gaining popularity among older householders fastest, with the 55+ segment accounting for 30% of all house-sharing households in 2023.

Economics

Apr 29, 2025

Jobs Openings Fall as Economy Slows

Consistent with soft sentiment data, the count of job openings for the overall economy and construction fell in March as employers slowed hiring plans amid a broader economic slowdown, per the March Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).