New overtime rule to impact businesses

The Department of Labor (DOL) has issued a final rule updating overtime regulations. The rule will significantly increase the overtime threshold to include all employees making up to $58,656 annually. The rule will take effect in two steps, with an increase in July of this year and another in January 2025.

Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association, issued the following statement about the change, saying “This rule will exponentially increase operating costs for small business restaurant owners who are trying desperately to maintain menu prices for their customers. And because DOL created a one-size-fits all rule based on national income data, rather than regional data, this change is going to disproportionately impact restaurant owners in the South and Midwest.

“The Association and Restaurant Law Center pushed back on a significant increase following so soon after an increase just four years ago. Business conditions have changed significantly for restaurant operators in that time. It’s unfortunate that DOL did not heed our concerns, especially as it relates to regional discrepancies and the burden of automatic increases every three years.”