New labor laws raise salary threshold and impact overtime rules

The U.S. Department of Labor has unveiled a significant update to the overtime regulations under the Fair Labor Standards Act (FLSA).

The update comes amid concerns that the previous salary threshold of $684 a week ($35,568 a year) has failed to keep up with inflation, leaving many salaried workers exposed to long hours without extra pay.

From 1 July the new threshold will increase to $844 a week ($43,888 a year), with a further increase from 1 January 2025 to $1,128 a week ($58,656 a year).

Under new federal rules, 360,855 additional workers in Indiana should receive overtime pay.