Federal Overtime Rule Update
Starting July 1, 2025, the Fair Labor Standards Act (FLSA) raises the minimum salary for exempt employees from $35,568 to $58,656 annually, with another increase coming in 2026. This applies nationwide, but many states may require even higher thresholds.
What HR Should Do:
- Reevaluate employee classifications for exempt vs. non-exempt
- Adjust pay structures and budgets
- Communicate changes with affected employees
- Check your state’s laws for stricter standards
NLRB Expands Employee Rights
In 2025, the National Labor Relations Board (NLRB) is strengthening employee rights in non-unionized workplaces. Under Section 7 of the National Labor Relations Act (NLRA), employees are protected when they:
- Discuss wages, schedules, and work conditions
- Organize, petition, and advocate—both in-person and online
- Push back against overly restrictive rules
What HR Should Do:
- Audit workplace policies on social media, confidentiality, and discipline
- Train managers on worker rights under the NLRA
- Prepare for broader joint-employer responsibilities
Federal vs. State Law
Follow the rule that provides greater protection to employees. For example, California and New York already have stricter exemption rules than federal law.
Key Takeaway
Stay compliant by updating policies, preparing for salary changes, and aligning with both federal and state labor standards.
