On April 23, 2024, the U.S. Department of Labor issued its Final Overtime Rule. This new Rule impacts the salary level for the overtime exemptions for executives, administrative, and professional employees. Here’s what you need to know:
- The new salary levels will be increased in phases:
- Current levels: $35,568 for standard salary level for exempt employees; $107,432 for highly compensated exemption.
- July 1, 2024: $43,888 for standard salary level for exempt employees; $132,964 for highly compensated exemption.
- January 1, 2025: $58,656 for standard salary level for exempt employees; $151,164 for highly compensated exemption.
- Additional salary increases will then occur every three years.
- There are no changes to the duties requirements for any exemption.
- Although DOL proposed increases for Puerto Rico and other US territories, the Final Rule does not adopt those changes. Salaries in those locations remain the same.
The Jackson Lewis Wage and Hour Practice Group will be holding a webinar on Monday 4/29 at 2:30PM CST to address the new rule and offer strategies for compliance. You can sign up to participate here.
Note that the “silver lining” here might be that this is also a very good opportunity to review your classifications and perhaps reclassify some employees where there may have been some risk. The new overtime rule provides an opportunity to make those changes without causing suspicion regarding prior misclassification. If you would like more information, please register for the webinar.
Information complements of Michaelle Baumert, HR Nebraska Legislative Director.