The U.S. Department of Labor has issued a final rule revising the white-collar exemptions to the Fair Labor Standards Act’s overtime rules that will make thousands of additional salaried executive, administrative, and professional employees eligible for overtime pay. The rule will increase the minimum amount that a salaried employee must be paid to be exempt from overtime pay—from the current $684 per week (equivalent to $35,568 per year) to $1,128 (equivalent to $58,656 per year). This 65% increase is even higher than the almost 55% increase that DOL proposed last September.
The increase will occur in two phases, with the minimum salary level increasing to $844 per week on July 1, 2024, and to $1,128 on January 1, 2025. The revised regulations also increase the minimum salary level for the highly compensated employees’ exemption and establish a mechanism to automatically update the salary levels every three years without public input.
The Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, will explain the rule in a Members Only Web Workshop on May 7, 2024.
CWC members can read more here.