DOL Final Overtime Rule Increases Salary Threshold for Exempt Employees

Last month, the Department of Labor (DOL) published a final rule updating and revising the Fair Labor Standards Act (FLSA) regulations exempting white-collar positions, including executives, administrative, professional, outside sales and computer employees as well as highly compensated employees (HCEs) from the minimum wage and overtime pay requirements applicable to lower-paid salaried workers.

On July 1, 2024, the salary level of white-collar exemptions subject to the minimum wage and overtime pay requirements will increase from $35,568 to $43,888 annually.  This amount will further increase on January 1, 2025, to $58,656 annually.  

The final rule will also increase the salary level threshold for HCEs receiving minimum wage and overtime protections on July 1, 2024, from $107,432 to $132,964 annually.  This HCE salary level will further increase on January 1, 2025, to $151,164.

These salary levels for both white-collar and HCE employees will continue to be updated every three years beginning July 1, 2027, under this final rule.