English
English
Español
Français

UP TO THE MINUTE

By Emma Peterson. A new initiative from Habitat for Humanity ...
Although the amendment preserves certain protections for employers, it is ...
Read More
Western Colloid - Sidebar Ad - FAAR Best Practices (CCS)
ICP - Sidebar Ad - APOC Professional Protection
Everroof-RoofingFundamentalsGiveaway-Sidebar
Progressive Materials - Sidebar - Free Samples
Instant Roofer - Sidebar Ad - Free Leads May 2024
SOPREMA - Sidebar Ad - The Right Coatings for the Right Roofs (RLW on-demand)
CoatingsCoffeeShop
English
English
Español
Français

DOL announces Final Rule on overtime exemption salary thresholds

Adams and Reese DOL announces Final Rule
April 24, 2024 at 7:00 p.m.

By Adams and Reese, LLP.

Employers should proactively begin evaluating whether to reclassify workers as non-exempt and begin paying overtime or to increase salaries above the potential minimum.

Under a Final Rule announced April 23, 2024, the salary threshold for "white collar" exemptions (executive, administrative and professional) will increase effective July 1, 2024, to the equivalent of an annual salary of $43,888. On January 1, 2025, the threshold will rise to the equivalent of a $58,656 annual salary.

In this Final Rule, the DOL used the methodology underlying the 2019 overtime salary level rule update.

Also effective on July 1, 2024, the “highly compensated employee” exemption will require payment of a minimum $132,964 total annual compensation to the worker. Moreover, starting on July 1, 2027, the minimum salary thresholds will begin automatically updating every three years, setting new salary levels based on up-to-date wage data.

The final rule may draw legal challenges like those lodged against the DOL’s 2016 unsuccessful attempt to raise the salary minimum to $921 per week.

Now that the DOL has announced the final salary levels and effective start dates, employers should proactively begin evaluating whether to reclassify workers as non-exempt and begin paying overtime or to increase salaries above the potential minimum.

The DOL regulatory action also provides a good opportunity for employers to assess whether employees currently classified as exempt are also satisfying the “duties” tests required for the exemptions. Employers also should carefully review whether salary increases to preserve overtime exemptions might lead to claims of discrimination from employees who do not receive pay raises.

Note: This article updates an alert that Adams and Reese wrote in September 2023 - "Potential Significant Increases in Salary Minimums for 'White Collar' Overtime Exemptions are on the Horizon."

About Adams and Reese

At Adams and Reese, we take things personally. Our people are connected — to each other, to our clients, our families and our communities. We care deeply about the people around us. 

As lawyers, it’s our business to know and understand our clients, their businesses, their current needs and their future plans. As neighbors, our commitment to volunteerism has become a deep-rooted characteristic of our firm's personality.



Recommended For You


Comments

There are currently no comments here.

Leave a Reply

Commenting is only accessible to RCS users.

Have an account? Login to leave a comment!


Sign In
Tremco - Banner Ad - The Art of (Roofing) Innovation (Mike Steele Podcast)
English
English
Español
Français

UP TO THE MINUTE

By Emma Peterson. A new initiative from Habitat for Humanity ...
Although the amendment preserves certain protections for employers, it is ...
Read More
Geocel - Sidebar - 50th Anniversary - Feb 2024
Uniflex - Sidebar - Silicone Colors - Feb 24
KARNAK - Sidebar - Karna Seal
Project Map It - Side Bar - Digital Portfolio
McCormack - Sidebar - Succession and Exit Planning - Watch Now
SOPREMA - Sidebar Ad - The Right Coatings for the Right Roofs (RLW on-demand)