On April 23, 2024, the U.S. Department of Labor
("DOL") issued its final rule on "Defining and
Delimiting the Exemptions for Executive, Administrative,
Professional, Outside Sales and Computer Employees", which
extends overtime protections to a significant number of salaried
employees unless their salaries are increased to meet the new
threshold. The effective date for the new rule is July 1, 2024,
although the rule's effect may be delayed based on anticipated
legal challenges.
The Fair Labor Standards Act ("FLSA") requires most
employers to pay employees overtime compensation at the rate of one
and one-half times the regular rate of pay for all hours worked
over 40 in a workweek, unless the employee qualifies for an
exemption. To qualify as an exempt executive, administrative, or
professional employee under the FLSA, generally the employee must
satisfy the applicable duties test, be paid on a salary basis
regardless of how many hours are worked during the
