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ARTICLE · 03 MAY 2024

DOL Announces Final Overtime Rule Increasing Salary Threshold

Bass, Berry & Sims PLC
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The U.S. Department of Labor (DOL) announced a Final Rule increasing the salary threshold for Fair Labor Standards Act (FLSA) overtime exemptions, a move which the DOL anticipates...

United StatesEmployment and HR
Mary Leigh Pirtle
Mary Leigh Pirtle

The U.S. Department of Labor (DOL) announced a Final Rule increasing the salary threshold for Fair Labor Standards Act (FLSA) overtime exemptions, a move which the DOL anticipates will result in around four million additional workers becoming eligible for overtime pay.

Currently, the minimum salary requirement for the "white collar" exemptions (executive, administrative, and professional) is no less than $684 per week ($35,568 per year). Under the DOL's new Final Rule, this amount will increase to:

  • $844 per week ($43,888 per year) on July 1, 2024
  • $1,128 per week ($58,656 per year) on January 1, 2025

The Final Rule contains further automatic increases to these "white collar" exemptions every three years, beginning on July 1, 2027, based on then-current earnings data. These automatic increases will be published by the DOL within 150 days prior to implementation.

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