The Department of Labor (DOL) has issued a final rule revising the regulations issued under the Fair Labor Standards Act (FLSA) implementing the exemptions from minimum wage and overtime pay requirements for executive, administrative, professional, outside sales, and computer employees (i.e., “white collar” employees”).
Significant revisions include increasing the standard salary level to qualify for the “white collar” exemptions from overtime and minimum wage, as well increasing the highly compensated employee total annual compensation threshold.
The rule increases the minimum salary threshold to qualify for the “white collar” exemptions from overtime and minimum wage. The current threshold is $684 per week (or $35,568 annualized). The increase will occur as follows:
- July 1, 2024: the threshold increases to $844 per week ($43,888 annualized);
- January 1, 2025: the threshold increases to $1,128 per week ($58,656 annualized).
The current threshold for the highly compensated employee exemption is $107,432 per year. This increase will occur as follows:
- July 1, 2024: the threshold increases to $132,964 per year;
- January 1, 2025: the threshold increases to $151,164 per year.
The salary thresholds will automatically be adjusted every three years based on salary data from the U.S. Bureau of Labor Statistics. The first automatic update will occur on July 1, 2027.
