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ARTICLE · 01 MAY 2024

DOL Salary Rule Alert: White Collar Exemption Final Rule Released

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Employers need to make sure they are paying exempt (salaried) employees enough under federal law, because the Department of Labor (DOL) released its final rule...

United StatesEmployment and HR
Kathleen M. Anderson
Kathleen M. Anderson
Mark Wallin
Mark Wallin
Benjamin Perry
Benjamin Perry
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Employers need to make sure they are paying exempt (salaried) employees enough under federal law, because the Department of Labor (DOL) released its final rule raising the salary level threshold for exempt employees.

Effective July 1, 2024, the federal salary threshold will increase to the equivalent of an annual salary of $43,888 ($684/week), with a further increase to $58,656 ($844/week) on Jan. 1, 2025. The July 1 increase updates the current annual salary threshold of $35,568 ($684/week).

The annual compensation threshold for "highly compensated employees" (HCE) will also increase. Salary thresholds will update every three years based on the latest earnings data.

Why does this matter? The Fair Labor Standards Act provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees. The statute also exempts certain computer employees. To qualify for exemption,

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