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ARTICLE · 14 MAY 2024

DOL's Final Rule Increases Compensation Threshold For Exempt Employees

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On April 23, 2024, the Department of Labor (DOL) announced Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, its final rule increasing compensation thresholds for overtime eligibility.

United StatesEmployment and HR
Madison Gaines
Madison Gaines
Sidney F. Lewis, V
Sidney F. Lewis, V

On April 23, 2024, the Department of Labor (DOL) announced Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, its final rule increasing compensation thresholds for overtime eligibility. This new rule will go into effect on July 1 and will affect approximately 4 million workers. Due to the widespread impact of this rule, employers will need to audit the exemption status of their employees in order to comply with the new rule.

Under the Fair Labor Standards Act, employers are required to provide overtime pay to employees who work more than 40 hours in a workweek unless an employee is exempt based on their classification and method of pay. Under the DOL's current regulations, the majority of positions in which employees are exempt from overtime pay are executive, administrative, professional, or computer employees who perform certain duties. Currently, these employees must also earn a guaranteed

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