Final Rule: Overtime Protection for Employees Making Less than $58,656
April 24, 2024
The U.S. Department of Labor has released the updated salary minimum requirements for salary-exempt employees under the Fair Labor Standards Act (FLSA). Effective July 1, 2024, the Salary Exempt threshold will increase to $43,888 and will further increase to $58,656 as of Jan. 1, 2025. Employees earning less than the new minimum salary thresholds or not meeting the job duties requirements will need to be reclassified as eligible for overtime pay as hourly or salary-non-exempt. It is anticipated that the overtime threshold will potentially increase every three years beginning July 1, 2027.
To be exempt from overtime under the FLSA’s executive, administrative, and professional exemptions—the worker must—
1. Be paid a salary,
2. The salary should not be less than a minimum salary threshold amount, and
3. The employee primarily performs duties that qualify for exemption under: Executive, Administrative, Professional, Computer Employee, Outside Sales, and Highly Compensated categories. If the employee is paid less or does not meet the duties criteria, the worker must be paid 1 1/2 times their regular hourly rate for hours worked in excess of 40 in a workweek.
Next Steps for Employers
Employers have two options for compliance:
- Transition the employee to a non-exempt position (hourly or salary non-exempt).
- Increase the salary to the new minimum threshold.
Read more here: Final Rule: Restoring and Extending Overtime Protections | U.S. Department of Labor (dol.gov)