Labor Department Finalizes New Overtime Salary Requirements
The U.S. Department of Labor (DOL) issued 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
Sep 17, 2025
Housing Starts Remain Soft Ahead of Fed MeetingOverall housing starts decreased 8.5% in August to a seasonally adjusted annual rate of 1.31 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Sep 16, 2025
Tradeswomen Paving Their Own WayNAHB spoke with Professional Women in Building (PWB) members Elyse Adams and Brittney Quinn about their career paths in the trades and how PWB has positively influenced their journeys.
Latest Economic News
Sep 17, 2025
After a monetary policy pause that began at the start of 2025, the Federal Reserve’s monetary policy committee (FOMC) voted to reduce the short-term federal funds rate by 25 basis points at the conclusion of its September meeting. This move decreased the target federal funds rate to an upper rate of 4.25%.
Sep 17, 2025
Challenging affordability conditions continue to act as headwinds for the housing industry, but the sector could see lower interest rates in the near future with the Federal Reserve expected to cut short-term interest rates this afternoon.
Sep 16, 2025
Builder sentiment levels remained unchanged in September but lower mortgage rates and expectations that the Federal Reserve will soon cut the federal funds rate led to higher future sale expectations in the coming months.