U.S. employers are watching the clock.

With federal rules expanding paid overtime eligibility set to take effect next month, business leaders are making moves to contain future costs, according to a New York Federal Reserve Bank survey.

The new regulation, finalized in May by the Labor Department and scheduled to come into force on Dec. 1, requires employers to pay time-and-a-half to salaried employees earning up to nearly $47,500 annually — about double the current threshold of almost $24,000 — after they work more than 40 hours per week.

Recommended For You

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.