DOL lowers FLSA overtime threshold affecting 3 million workers

On March 4, 2025, the Department of Labor proposed lowering the overtime salary threshold from $58,656 to $35,568, affecting approximately 3 million workers’ eligibility. (Source: Reuters preview)

The proposal removes the automatic adjustment for inflation every three years from the overtime threshold calculation. (Source: DOL rulemaking page)

Under Section 7(a)(1) of the Fair Labor Standards Act, employees must receive 1.5× their regular rate for hours worked over 40 in a workweek. (Source: FLSA statute)

The rulemaking retains separate, higher salary criteria for “highly compensated employees” under the DOL’s HCE test. (Source: DOL rulemaking page)

The notice of proposed rulemaking estimates annual employer savings of $1 billion due to reduced overtime payments. (Source: NPRM-2025.pdf)

Public comments on the proposal are open for 60 days via the Federal Register notice published March 4, 2025. (Source: Federal Register)

The Economic Policy Institute launched the #OvertimeIsEssential campaign opposing the rollback. (Source: EPI campaign page)

New York Attorney General Letitia James pledged to file suit against the rollback, calling it “wage theft in broad daylight.” (Source: NY AG press release)

Congress has 60 legislative days under the Congressional Review Act to overturn the final rule if issued. (Source: Congress.gov)