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The Department of Labor's Wage and Hour Division (DOL) issued a final rule that will increase the minimum salary threshold for the "white collar" overtime exemption under the Fair Labor Standards Act (FLSA).
Labor Department Increases Overtime Salary Threshold To $58K Per Year In Final Rule
The Department of Labor’s Wage and Hour Division (DOL) issued a final rule that will increase the minimum salary threshold for the “white collar” overtime exemption under the Fair Labor Standards Act (FLSA) from $35,568 to $58,656 per year. To be exempt from overtime pay under this provision, workers must be paid a salary of at least $58,656 and must also meet certain job duties for executive, administrative, and professional employees. Workers with a salary below this salary threshold must be paid overtime if they work more than 40 hours a week. Additional information is available at Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA) | U.S. Department of Labor (dol.gov).
DOL released the following implementation schedule for the final rule:
|
Compliance Date |
Salary Level |
|
|
Current |
$35,568 per year |
|
|
July 1, 2024 |
$43,888 per year |
|
|
January 1, 2025 |
$58,656 per year |
|
|
July 1, 2027 |
Will be calculated in 2027 and recalculated every 3 years. DOL will provide notice not fewer than 150 days before each future update. |
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