Department of Labor – Overtime Rule

The Department Of Labor (DOL) has released a final rule that revises overtime regulations under the Fair Labor Standards Act (FLSA). Here are the key points:

1. 1. Salary Threshold Increase:
   2. Effective July 1, 2024, an executive, administrative, or professional employee must receive a salary equivalent to $43,888 per year to be classified as exempt.
   3. This threshold will increase to $58,656 on January 1, 2025.
2. Updates and Revisions:
   • The final rule updates and revises regulations for exemption from minimum wage and overtime pay requirements for EAP (executive, administrative, and professional) employees.
   • It includes increases to the standard salary level and the highly compensated employee total annual compensation threshold.
   • The rule also provides for timely updates of these thresholds based on current earnings.

This rule aims to protect workers and ensure fair compensation.

Employers are advised to review and potentially adjust salaries for exempt employees whose current salaries fall below these new thresholds. Otherwise, those employees will become eligible for overtime pay, requiring employers to track their hours and compensate them primarily on an hourly basis.

We recommend reviewing employee classifications to ensure compliance with FLSA overtime exemption rules. If adjustments are necessary, please promptly communicate these changes to your employees.

Please also keep in mind that the deadline is approaching, July 1, 2024.

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Posted In: Resource Information