On April 23, 2024, the U.S. Department of Labor announced a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, which amends the regulations at 29 CFR part 541 under the Fair Labor Standards Act.
The final rule follows a Notice of Proposed Rulemaking published on September 8, 2023, in the Federal Register and makes the following changes:
The final rule follows a Notice of Proposed Rulemaking published on September 8, 2023, in the Federal Register and makes the following changes:
- Increases the standard salary level and the total annual compensation requirement for highly compensated employees (HCE).
- On July 1, 2024, the standard salary level will equal $844 per week and HCE total annual compensation level will equal $132,964.
- On January 1, 2025, the standard salary level will equal $1,128 per week and the HCE total annual compensation level will equal $151,164.
- Adopts a mechanism to update the earnings thresholds every three years.
The final rule will take effect on July 1, 2024.
Final Rule: Restoring and Extending Overtime Protections
DOL | Apr 2024
Effective date: 7/1/24 and 1/1/25
Read the Final Rule.
SHRM Resources
Toolkit: Understanding Overtime Exemptions Under the FLSA
Flow Chart: FLSA Exemption Flow Chart
HRQA: How can employers avoid salary compression ....under the new overtime regulations?
Overview: What You Need to Know About Overtime Pay
Resource Page: FLSA Overtime Rule Resources
Challenges Filed - May 2024
On May 22, 2024, more than a dozen business groups and a company filed a lawsuit seeking to block the U.S. Department of Labor’s (DOL) new final rule that significantly raises the minimum salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar overtime exemptions and will require employers to either provide salary increases to millions of exempt workers across the country, or reclassify them so they are eligible for overtime.
Business Groups File Lawsuit to Block DOL’s Raised Salary Thresholds for White Collar Overtime Exemptions
Ogletree | May 2024
Déjà vu All Over Again: The DOL Overtime Rule Faces Legal Challenge
Seyfarth | May 2024
Original Development: SHRM and Law Firm Articles
Under the new rule, the total annual compensation requirement for HCEs will increase from $107,432 per year to $132,964 per year on July 1 and will rise to $151,164 per year on Jan. 1, 2025. Earnings thresholds will be updated every three years starting July 1, 2027.
Prepare for FLSA’s New Salary Thresholds for Highly Compensated Employees
SHRM | May 2024
Employers with exempt employees making less than the new minimum salary requirements for exempt workers will need to decide whether to raise salaries or reclassify employees as nonexempt. HR should consider the economic and morale impacts of reclassification.
Overtime Rule: Raise Salaries or Reclassify Employees?
SHRM | May 2024
Employees Making Less than $58,656 May Now Be Eligible for Overtime
SHRM | Apr 2024
10 Steps Employers Can Take Now to Prepare for $59k Salary Floor
Fisher Phillips | Apr 2024
Department of Labor Publishes Final Rule to Update the Salary Level for Overtime Eligibility
Littler | Apr 2024
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