On April 23, 2024, the U.S. Department of Labor issued its Final Rule making major changes in the minimum salary requirements for overtime exempt salaried employees. Specifically, the rule raised the minimum salary threshold from its current level of $35,568 per year to $43,888 per year (effective July 1, 2024) and to $58,656 per year (effective January 1, 2025).
The new rule also increases the salary threshold for overtime exempt “highly compensated employees” from $107,432 to $132,964 (effective July 1, 2024) and to $151,164 (effective January 1, 2025).
These new overtime salary threshold levels are expected to impact some 3-4 million currently exempt salaried employees and likely make those employees overtime eligible going forward.
Finally, the new DOL rule includes provisions to automatically update (i.e., increase) these salary threshold levels every three years based on then current DOL earnings data.