In early March 2024, the U.S. Department of Labor’s (DOL) proposed overtime rule, announced in August 2023, entered its last stage of review. Publication of the final rule is expected soon. The rule would amend the requirements that employees in certain white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA).
The FLSA white-collar exemptions apply to individuals in executive, administrative, and some outside sales personnel and computer-related occupations. Some highly compensated employees (HCEs) may also qualify for a FLSA white-collar exemption. To qualify for most white-collar exemptions, employees must meet the specified salary threshold, among other criteria.
The DOL is proposing to increase the standard salary level from:
- $684 to $1,059 per week ($55,068 per year); and
- $107,432 to $143,988 per year for highly compensated employees (HCEs).
The rule would also enable the DOL to update the salary levels automatically every three years without having to rely on the rulemaking process. Click the following link to read our entire HR Compliance Bulletin – Preparing for the DOL’s New Overtime Rule.
