Workers’ Compensation and OT Updates
Upcoming changes that will impact you and your customers
As we approach the end of the year, it’s the perfect time to double down on our efforts to meet those year-end goals and start thinking about what we want to achieve in the year ahead. Let’s stay focused, work hard, and finish strong. This is also a great time to prepare for year-end responsibilities, like verifying mailing addresses and W-9 information, to ensure everything is in order as we transition into the new year.
Department of Labor Reversal
We want to share an important update regarding the Department of Labor’s (DOL) overtime regulations. On November 15, 2024, a federal court in Texas struck down the recent DOL rule that aimed to raise the minimum salary requirement for exempt employees under the Fair Labor Standards Act (FLSA).
As a result, the previously scheduled salary increases set for January 1, 2025, are now blocked, and the July 1, 2024, increases have been invalidated. Effective immediately, the salary level test reverts to $684 per week ($35,568 annually), and the compensation threshold for highly compensated employees returns to $107,432 annually.
Florida Workers’ Compensation Rates 2025
Additionally, we are happy to share news on workers’ compensation insurance rates in Florida. The Florida Office of Insurance Regulation has approved a 1% decrease in overall workers’ compensation rates for 2025, marking the eighth consecutive year of rate reductions.
Insurance Commissioner Michael Yaworsky highlighted the stable and competitive nature of the workers’ compensation market, noting that this reduction will support the success of businesses throughout Florida. The National Council on Compensation Insurance (NCCI) initially proposed the decrease in August, describing the workers’ compensation system as “healthy,” with stable medical costs and declining claims frequency.
Recent legislation (SB 362) to increase reimbursements for physicians impacted the final rate decision. Without this change, the rate decrease could have been as high as 6.4%.
Here is the link to the full NCCI hearing with the State of Florida. Below are a couple important screenshots from the presentation.
