New Department of Labor Ruling

New overtime rules are now in place for salaried positions following updated regulations from the U.S. Dept. of Labor (DOL) which took effect July 1.

The rule, which falls under the Fair Labor and Standards Act (FLSA), raises the minimum salary threshold for employees to be considered exempt from receiving overtime. To qualify as exempt, employees must be paid on a salary basis, be paid at least the minimum salary level, and have primarily executive, administrative or professional duties.

Previously, the minimum salary level was $35,568 annually, or $684 per week. Now, the threshold is $43,888 annually or $844 per week.

The threshold will rise again Jan. 1, 2025, with a new minimum salary level of $58,656 per year or $1,128 per week.

The DOL rule also increased standards for “Highly Compensated Employees” or HCEs a from a minimum of $107,432 to $132,964 as of July 1 and increasing to $151,164 on Jan. 1, 2025.

The new regulations have impacted an estimated 1 million employees and will impact 3 million after the new year. 

Multiple lawsuits have been brought against the DOL by opponents to rule. A federal judge in Texas granted the state a temporary pause for certain workers employed by the state. Elsewhere, the new rule is in full effect, while litigation remains pending. This means employers must increase pay for workers to be considered exempt from overtime pay or begin paying overtime for workers who work more than 40 hours per week. 

Learn more about the rule by visiting dol.gov.