Editor’s note: Several child care providers and programs have reached out to First Five Nebraska about the upcoming changes to the U.S. Department of Labor’s wage and hour regulations. Because many employees in the child care industry work long hours to meet the needs of their demanding roles, these salaried employees may become eligible for overtime pay if they work more than 40 hours in a workweek and do not meet the new salary threshold. We reached out to labor experts at Rembolt Ludtke law firm for their take on it.
Beginning July 1, a greater number of employees across Nebraska may be eligible for overtime pay for any work completed over 40 hours in a work week. The U.S. Department of Labor’s final rule, released earlier this year, becomes effective next month and substantially increases the minimum salary requirements for the executive, administrative and professional employee overtime exemptions.
Effective July 1, the rule will raise the salary requirement to $844 per week (equivalent to $43,888 annually). Beginning Jan. 1, 2025, the threshold is set to jump to $1,128 per week (equivalent to $58,658 annually). These new thresholds are significant increases over the current salary threshold of $684 per week (equivalent to $35,568 annually).
Employers must review all job classifications to ensure employees are appropriately classified as “exempt” or “non-exempt” under the new rule, or risk significant back pay, liquidated damage and attorney’s fee liability.
For a synopsis of the requirements of the executive, administrative and professional employee overtime exemptions, see Rembolt Ludtke’s website.
