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HR Breaking News - New "Overtime Rule" From the US DOL
U.S. Department of Labor finalized rules to increase the exempt salary compensation thresholds. As a reminder, some classifications such as Executive, Administrative, and Professional can be exempt from the Federal Labor Standards Act (FLSA) overtime rules if they are:
- paid on a salary basis
- are paid at least the designated minimum weekly threshold (currently, the designated minimum weekly threshold is $684 a week/$35,568 annualized)
- and meet certain duties tests.
The new rules were released on April 23, 2024. Below is a high-level overview of the changes and we will provide more information and detail as we work diligently to understand the specifics of the rule change.
- Effective July 1, 2024, the salary threshold for most exempt employees will increase to $43,888 annually or $844 weekly.
- Effective January 1, 2025, the salary threshold for most exempt employees will increase to $58,656 annually or $1,128 weekly.
- The rule will adjust the threshold for highly compensated employees to $132,964 annually on July 1, 2024, and then to $151,164 annually on January 1, 2025.
- Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels.
We anticipate business groups or states opposing the final rule may file litigation similar to what happened in 2016, however you should not count on the rule being stopped. One of the first steps is to make a list of your current exempt employees that make less than $43,888 annually and $58,656 annually.
Our team of HR Consultants are glad to help you navigate these changes. We can help your business develop strategies to mitigate the risks and potential impacts to your budget. JER HR Group will hold a webinar in the future to cover more details. As we have more information we will continue to provide updates to you.
If you have any questions on our HR services, please contact Becky Page at [email protected]. For more updates please be sure to go to jerhrgroup.com and sign up for our newsletter.
Hosted, Managed, and Produced by Kayla Williams
A product of JER HR Group
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By JER HR Group
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U.S. Department of Labor finalized rules to increase the exempt salary compensation thresholds. As a reminder, some classifications such as Executive, Administrative, and Professional can be exempt from the Federal Labor Standards Act (FLSA) overtime rules if they are:
- paid on a salary basis
- are paid at least the designated minimum weekly threshold (currently, the designated minimum weekly threshold is $684 a week/$35,568 annualized)
- and meet certain duties tests.
The new rules were released on April 23, 2024. Below is a high-level overview of the changes and we will provide more information and detail as we work diligently to understand the specifics of the rule change.
- Effective July 1, 2024, the salary threshold for most exempt employees will increase to $43,888 annually or $844 weekly.
- Effective January 1, 2025, the salary threshold for most exempt employees will increase to $58,656 annually or $1,128 weekly.
- The rule will adjust the threshold for highly compensated employees to $132,964 annually on July 1, 2024, and then to $151,164 annually on January 1, 2025.
- Starting July 1, 2027, salary thresholds will update every three years, by applying up-to-date wage data to determine new salary levels.
We anticipate business groups or states opposing the final rule may file litigation similar to what happened in 2016, however you should not count on the rule being stopped. One of the first steps is to make a list of your current exempt employees that make less than $43,888 annually and $58,656 annually.
Our team of HR Consultants are glad to help you navigate these changes. We can help your business develop strategies to mitigate the risks and potential impacts to your budget. JER HR Group will hold a webinar in the future to cover more details. As we have more information we will continue to provide updates to you.
If you have any questions on our HR services, please contact Becky Page at [email protected]. For more updates please be sure to go to jerhrgroup.com and sign up for our newsletter.
Hosted, Managed, and Produced by Kayla Williams
A product of JER HR Group