The U.S. Department of Labor (DOL) announced a final rule to update the overtime exemption requirements for employees in white-collar occupations under the Fair Labor Standards Act (FLSA). The rule, effective July 1, 2024, raised the standard salary level for white-collar employees from $684 to $844 per week ($35,568 to $43,888 per year) and for highly compensated employees from $107,432 to $132,964 per year. A further increase will occur on January 1, 2025, raising the salary level for white-collar employees to $1,128 per week ($58,656 per year) and for highly compensated employees to $151,164 per year.
EMPLOYER CONSIDERATIONS
The July salary level increase is expected to affect nearly 1 million workers, while the January increase will impact approximately three million workers. Employers should familiarize themselves with the new rule and assess changes necessary to comply. The DOL department of Wage and Hour Division has provided a webinar and FAQs.