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FLSA: Proposed Overtime Rule Issued

More of your employees may be eligible for overtime pay under a new rule that is likely to be finalized in April and could take effect soon. As proposed in August, the Labor Department intends to significantly raise the exempt salary threshold for the so-called “white-collar” exemptions from about $35K to about $55K – meaning your workers will need to earn at least the new threshold to even be considered exempt from OT pay.
Labor Department’s New Overtime Rule Likely Coming Soon: Your 8-Step Plan to Prepare
Fisher Phillips | Mar 2024

On Nov. 7, SHRM submitted its comment about the Department of Labor (DOL) Wage and Hour Division’s (WHD’s) proposed rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.
Read SHRM's comments.
SHRM | Nov 2023

Article: Lawmakers Debate Change to Overtime Salary Threshold
Guide: 2023 FLSA Proposed Salary Increase Impact Analysis Guide
Calculator: 2023 Proposed Salary Increase Impact Analysis
How-to Guide: How to Prepare for the Proposed Overtime Rule Changes
Flow Chart: FLSA Exemptions
Article: Overtime Would Become Available to Millions More Employees Under Proposed Rule
SHRM | Aug – Nov 2023

Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees
Notice of Proposed Rulemaking

About the Proposed Rule
Frequently Asked Questions

SHRM MEMBERS' SURVEY: Tell us what you think about the Express Request self-service feature in four quick questions.

Law Firm Articles

The U.S. Department of Labor (DOL) unveiled its semi-annual regulatory agenda on December 6, 2023, which sets an April 2024 date for release of the agency’s anticipated final rule amending the regulations defining the “white collar” exemptions from the overtime and minimum wage requirements of the Fair Labor Standards Act (FLSA).
DOL Aims for April 2024 Release of White-Collar Exemption Final Rule
Jackson Lewis | Dec 2023

Employers may need to adjust their pay practices now that the Labor Department has issued its long-anticipated proposal to raise the salary threshold for exempt employees – a change that could make more of your employees eligible for overtime premiums.
Labor Department’s Proposed Overtime Rule Could Raise Salary Floor to $55k: Here Are 8 Ways Employers Can Prepare Now
Fisher Phillips | Aug 2023

However, the DOL has indicated the actual salary threshold will be based on earnings data as of the date the final rule takes effect — which means that the salary floor may be even higher than the projected $55,068. That could lift the operative threshold to more than $60,000 annually.
DOL Proposed White-Collar Exemption Rule Sets Minimum Salary Over $55K
Jackson Lewis | Sep 2023

It is important to note that the DOL’s proposed rule is still subject to the notice and comment period for the 60-day period following publication of the proposal. This means that the current proposal could still change between now and when a final rule actually goes into effect.
DOL’s New Proposed Overtime Rule Would Drastically Increase the Salary Threshold for the White Collar Overtime Exemption
Ford Harrison | Sep 2023

DOL proposes that a final rule be effective 60 days after adoption, which would result in an adoption period shorter than those allowed in the 2004, 2016 and 2019 updated salary-level rules.
DOL Proposes Major Increase in Required Salary Threshold Amounts for FLSA Exemptions
McGuire | Sep 2023

The agency is proposing that, except for American Samoa, said increases also apply in the U.S territories, including Puerto Rico. In the particular case of Puerto Rico, it is important to note that the standard salary threshold has not changed since 2004 and currently stands at $455 per week. The last time the salary rule was revised in 2019, the agency elected to preserve the $455 per week amount for employees in Puerto Rico, Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands instead of applying the then-new and current standard salary level of $684 per week that applies to employees in the 50 states and the District of Columbia.
Will the FLSA Regulations for Exempt Employees Apply to Puerto Rico Operations?
Littler | Aug 2023


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