Labor Department Finalizes New Overtime Salary Requirements
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.
Latest from NAHBNow
Membership
Sep 24, 2026
NAHB Mourns the Passing of Past Chairman Tom Woods
Tom Woods, 2015 NAHB chairman, passed away on Monday, Sept. 21. A Blue Springs, Mo.-based home builder and its former mayor, Woods served as president of Woods Custom Homes.
Economics
Sep 24, 2026
New Home Sales Rise as Affordability Challenges Continue
Sales of newly built single-family homes increased 6.4% in August to a seasonally adjusted annual rate of 684,000, following an upwardly revised July estimate, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales was 2% lower than a year earlier.
Latest Economic News
Economics
Sep 24, 2026
Single-Family Detached Homes Still Dominate Among the 55+ Population
Adults ages 55 and older make up a large and growing share of the U.S. population and play an important role in the U.S. housing market. In 2024, around 103 million Americans were ages 55 or older, ranging from adults still in the labor force to retirees.
Economics
Sep 23, 2026
Number of Bathrooms in New Single-Family Homes in 2025
Single-family homes started construction in 2025 typically had two full bathrooms, according to the U.S. Census Bureau’s Annual Survey of Construction.
Economics
Sep 23, 2026
Q2 2026 Remodeling Market Update: Labor and Nonlabor Input Costs
The remodeling industry is taking on a larger role within the residential construction sector. Structural tailwinds, such as an aging housing stock, the growing trend of aging-in-place among older home owners, and record-high housing wealth, will continue to grow remodeling’s market share further.