Why salaried workers could see a pay bump this summer

NASHVILLE, Tenn. (WKRN) — Check your pay stubs in the coming weeks because you could see a pay bump. It’s due to a new Department of Labor rule helping millions more American workers qualify for overtime.

After years of inflation, a boost for the American worker. Starting in early July, more salaried workers qualify for overtime. Nationwide, the salary threshold rises from $35,568 up to $43,888.

Nashville Attorney Luther Wright Jr., office managing shareholder at Ogletree Deakins, called the new rule significant. “We were concerned about raising the floor, that’s the minimum wage. And now this is aimed at raising the ceiling,” said Wright.

This new rule is expected to boost pay for many assistant manager and supervisor positions. Wright had this advice for workers: 

“One, have honest dialogue with your supervisors about how many hours you’re working, and what your actual work-week looks like. Two, make sure you are accurately recording the  number of hours that you’re working, and that it matches up with the number of hours that your employer has within its system.”

The Department of Labor made the change after a review/comment period where pro-business groups like the U.S. Chamber of Commerce in a filing urged the department to “reconsider its proposal.”

Attorney Todd Cole, founder of Cole Law Group, said the new rule will create winners and losers. 

“Employers will see a significant increase in their payroll expense, particularly in industries employing a significant number of workers making under that $44,000 threshold,” said Cole. “Like I said, this may act to further cool an already slowing labor market. So, good for workers with jobs and possibly not so good for workers trying to get jobs.”

The rollout is not over either. There’s always a chance it can get tied up in the courts, or changed by a new administration. But, in January 2025, the threshold expands again from $43,888 to $58,656, followed by increases every three years. 

“That’s an even more significant change. So by the time we get to January of 2025, you would have seen about a $23,000 raise in that threshold amount,” said Wright.

Labor experts recommend workers check their next couple of pay stubs closely. Here’s more information from the Department of Labor.