In a recent development, the U.S. federal government has decided to raise the threshold for overtime wages in the United States. The current threshold, set in 2019, exempts most employees who earn at least $684 per week ($35,568 per year) from receiving overtime wages at the federal level. However, states can impose higher thresholds and stricter requirements.

Beginning on July 1, 2024, the new threshold will be $884 per week or approximately $43,888 per year. Furthermore, the Department of Labor plans to review this threshold every three years to ensure it keeps pace with changes in worker salaries.

This change will have a significant impact on American swim coaches, who will now be entitled to significant raises or adjustments to their workloads. Currently, many swim coaches, including those at the collegiate level, receive salaries that match the overtime-exempt threshold of $35,568 per year. With the new overtime threshold, these coaches will need to be adequately compensated for any hours worked beyond 40 hours per week.

The Department of Labor highlighted that overtime protections are crucial in preventing worker exploitation and benefiting not just the workers but also their families and communities. These protections help build the middle class and ensure that workers are not overworked and underpaid.

This new overtime rule is the result of extensive input from the public, with the Department of Labor conducting nearly 30 listening sessions across the country and reviewing over 33,000 written comments. Many workers expressed their desire to be fairly compensated for their extra hours of work, emphasizing the importance of the new rule.

The impact of this change will also be felt by local swim clubs, which often aim to pay salaries close to the overtime-exempt threshold. While specific salary data for these clubs is not publicly available, anecdotally, many of them will need to adjust wages to comply with the new threshold.

It is important to note that this is one of two significant rule changes implemented by the Department of Labor. The other change is the termination of most non-compete clauses in the United States, a move that empowers coaches and employees and adds financial pressure to the already-strained swimming industry.

The new overtime threshold increase aims to ensure fair compensation for employees and aligns with the Department of Labor's mission to protect workers' rights. As swim coaches and local clubs prepare for these changes, it remains to be seen how the adjustments will impact the sport and its stakeholders.