New Salary Level for Overtime Exemption

New Salary Level for Overtime Exemption

The Department of Labor announced a new salary threshold to determine an Executive, Administrative and Professional overtime exemption. The salary threshold will increase to the equivalent of an annual salary of $43,888($844 per week) effective July 1,2024 with an increase to $58,656 on Jan. 1, 2025. The July 1st increase updates the present annual salary threshold of $35,568. In addition, the rule will adjust the threshold for highly compensated employees. Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels. To determine if a position would fall under the Executive, Administrative and Professional overtime exemption, an employee generally must meet three tests:

1. be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed;
2. be paid at least a specified weekly salary level; and
3. primarily perform executive, administrative, or professional duties, as provided in the Department of Labor's regulations.

Now is a good time to review job descriptions and salary levels to ensure compliance.  We will be glad to help with the review. 
More information can be found at: 
Final Rule: Restoring and Extending Overtime Protections | U.S. Department of Labor (dol.gov)
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