Thousands More New Jersey Workers Now Qualify For Overtime Pay: Report

NEW JERSEY — It’s a familiar tune to employees across the United States: a job that pays a salary and isn’t eligible for overtime pay. But thanks to a recent federal rule change, hundreds of thousands of salaried workers in New Jersey – and many more nationwide – will now qualify for “time and a half” when they go over 40 hours a week, a report says.

Many U.S. employees are familiar with the concept of working overtime. On the federal level, this takes place when someone tops 40 hours in a single workweek – netting them “time and a half” over their normal pay rate. Some states also have their own overtime laws, including New Jersey, where the time and a half rule after 40 hours also applies.

However, some types of employees – including those who are paid on a “salary” basis and not an hourly one – are exempt from the overtime rules laid out under the federal Fair Labor Standards Act (FLSA). And it’s time to make sure these employees are earning a “fair day’s pay for a fair day’s work,” advocates say.

The U.S. Department of Labor recently unveiled a significant update to overtime pay regulations under the FLSA, which took effect on July 1.

Previously, salaried workers who earned more than $35,568 per year (about $684 per week) were exempt from federal overtime rules. But under the new rules, salaried workers will be eligible for overtime pay if they make less than $43,888 per year (about $844 per week).

The threshold will be lowered again on Jan. 1, 2025, when salaried workers earning less than $58,656 per year ($1,128 per week) will be eligible for overtime.

Starting in July 2027, these eligibility thresholds will be updated every three years based on current federal wage data.

How many workers will the new rules impact in New Jersey? According to a recent analysis from Bisnar Chase, about 483,307 extra workers in the Garden State should now be paid for working overtime.

Nationwide, that number is estimated to reach around 17 million, researchers said.

“Expanding overtime protections through the Department of Labor’s updated rule not only safeguards workers’ time and compensation but also promotes fair labor practices across industries,” said Brian Chase, a partner at Bisnar Chase.

“The revisions are seen as a pivotal step towards achieving a balance between economic demands and worker rights, fostering sustainable business practices nationwide,” Chase added.

• See Related: Is NJ Ready For A 32 Hour Workweek? It Could Happen – Here’s How

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