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 and Law Firm Articles
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
Note: The following items were published prior to publication of the final rule.
Preparing for Expected Changes to Exempt Salary Threshold
Foley & Lardner | Apr 2024
The DOL’s New Overtime Rule is Heading Straight for Us
Schwabe | Apr 2024
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