The Department of Labor has finally released the final rule that had been in the works for quite some time. The rule relates to the new salary thresholds for the FLSA’s white collar exemptions (related to overtime). The below was announced by the DOL:
“Effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888 and increase to $58,656 on Jan. 1, 2025. The July 1 increase updates the present annual salary threshold of $35,568 based on the methodology used by the prior administration in the 2019 overtime rule update. On Jan. 1, 2025, the rule’s new methodology takes effect, resulting in the additional increase. In addition, the rule will adjust the threshold for highly compensated employees. Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels.”
You can expect that lawsuits will be filed, but it’s too early to tell if any court will stop implementation of the rule. We suspect they will but it’s still an unknown right now. For now, you have until July 1 of this year to prepare for the first increase.
Read full announcement from the DOL here.
If you have questions or would like any assistance in reviewing your job positions that are no longer exempt under this new rule, please do not hesitate to reach out to us.
Questions?
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