You May Have Missed It…the ?Department of Labor Releases Final Rule on Increase in ?Salary ?Threshold for White Collar Exemptions
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By: J. Michael Rose
In an October 2023 article , we discussed the United States Department of Labor’s (“DOL”) proposed new rule that would significantly raise the minimum salary for employees to qualify for the so-called “white-collar exemptions” (administrative, executive, and professional employees, among other classifications) to the overtime requirements of the Fair Labor Standards Act (“FLSA”).
While overshadowed by the release of the more publicized Federal Trade Commission’s non-compete ban , the DOL’s final overtime rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, has now been finalized and released as of April 23, 2024. The following is a summary of the new law and our general recommendations for employers. Unless enjoined by the courts, the new rule will go into effect on July 1, 2024.
What Does the Final Rule Require?
1. increased minimum salary for administrative, executive, and professional employees, as follows:
-July 1, 2024- $43,888 per year; $844 per week;
-January 1, 2025- $58,656 per year; $1,128 per week;
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-January 1, 2027- will be calculated in 2027 and recalculated every 3 years
2. increased total compensation threshold for highly compensated employees as follows:
-July 1, 2024- $43,888 per year; $844 per week;
-January 1, 2025- $58,656 per year; $1,128 per week;
-January 1, 2027- will be calculated in 2027 and recalculated every 3 years
What Should We Do Now?