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ARTICLE · 20 MAY 2024

Labor Department's Final Rule On FLSA Salary Threshold Increases Explained

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On April 23, the Department of Labor (DOL) released a final rule raising the salary thresholds for certain overtime exemptions under the federal Fair Labor Standards Act...

United StatesEmployment and HR

On April 23, the Department of Labor (DOL) released a final rule raising the salary thresholds for certain overtime exemptions under the federal Fair Labor Standards Act (FLSA). See the commentary and final rule, as well as the DOL's FAQ.

Key Takeaways

  • The FLSA exempts executive, administrative, and professional employees from receiving overtime based on a combination of factors: whether the employee is paid a salary, the size of the salary and the employee's duties.
  • The new rule increases the salary thresholds for employees in these groups to be exempt from the FLSA's overtime requirements.
  • On July 1, 2024, the following increases go into effect:
    • The salary threshold for FLSA exemptions for executive, administrative, and professional employees will increase to $855/week ($43,888/year) from $684/week ($35,568/year).

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