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ARTICLE · 01 MAY 2024

Here We Go Again: DOL Issues Final Rule On Salary Level Increase For FLSA Exemptions

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On April 23, 2024, the United States Department of Labor ("DOL") announced a final rule which will raise the salary threshold required to classify employees as exempt from overtime pay...

United StatesEmployment and HR
Kara Shea
Kara Shea
Reave Shewmake
Reave Shewmake
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On April 23, 2024, the United States Department of Labor ("DOL") announced a final rule which will raise the salary threshold required to classify employees as exempt from overtime pay requirements under federal law. Effective July 1, 2024, the salary threshold will increase from the current level of $684 per week ($35,568 annualized) to $844 per week ($43,888 annualized). Then, on January 1, 2025, the salary threshold will increase to $1,128 per week ($58,656 annualized). These changes will result in a 65% overall increase in the FLSA salary threshold for overtime exemptions.

Background

The federal Fair Labor Standards Act ("FLSA") requires covered employers to keep accurate records of employee work time, pay employees at least minimum wage at the current rate of $7.25 per hour, and pay overtime pay of at least 1.5 times the employee's regular hourly rate if the employee works more than 40 hours in a 7-day workweek. However, there are exceptions to these

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