The new overtime rule issued by the U.S. Department of Labor (DOL) has huge implications for HVAC contractors, and they start July 1, 2024. The new rule aims to expand overtime protections by increasing the minimum salary thresholds required to exempt a salaried bona fide executive, administrative, or professional employee (EAP) from federal overtime pay requirements. The biggest impact of this rule: the increase in salary threshold, as the final rule increases the standard salary level for exemption, and the total annual compensation requirement for Highly Compensated Employees (HCEs). Currently, the response to the rule from HVAC contractors have been mixed. Small businesses are likely to feel the impacts of the rule the most, as the increase of salary for exempt employees does mean that more HVAC employees would be eligible for overtime, resulting in an increase of labor costs for HVAC businesses that in turn, affects the bottom line.
Effects of New Overtime Rule on HVAC Contractors
An HVAC Minute Video Update: June 18, 2024
