April 23, 2024
U.S. DOL Publishes Final Overtime Rule
On April 23rd, the U.S. Department of Labor announced the final overtime rule. As suggested last summer in the proposed rule, the DOL made no changes to the salary basis test or any of the duties tests.
When the final rule takes effect, in order to properly classify an employee as exempt under the Fair Labor Standards Act (FLSA), that employee must earn a minimum weekly salary of at least $844 as of July 1, 2024. That minimum will increase to $1,128 as of January 1, 2025. That represents a nearly 65% increase! Thereafter, the minimum salary will be adjusted every three years.
Like several other federal rules that were published this month, this rule also faces legal challenges. Stay tuned!
In the interim, join the FREE webcast on May 8th for more information.
