Dept. of Labor Releases Final Overtime Rule
Earlier this week, the U.S. Department of Labor (DoL) released its final overtime rule.
To avoid being eligible for overtime pay, an employee must: (1) receive a salary, (2) earn a salary above a certain level, and (3) fulfill the specific duties outlined for exemptions like executive, administrative, or professional roles ("white collar" exemptions). These exemptions matter because non-exempt employees are entitled to overtime pay at one and a half times their regular rate for any hours worked beyond 40 in a week.
Learn more: https://www.dol.gov/agencies/whd/overtime/rulemaking
|
DATE |
STANDARD SALARY LEVEL |
HIGHLY COMPENSATED EMPLOYEE TOTAL ANNUAL COMPENSATION THRESHOLD |
|
Before July 1, 2024 |
$684 per week (equivalent to $35,568 per year) |
$107,432 per year, including at least $684 per week paid on a salary or fee basis. |
|
July 1, 2024 |
$844 per week (equivalent to $43,888 per year) |
$132,964 per year, including at least $844 per week paid on a salary or fee basis. |
|
January 1, 2025 |
$1,128 per week (equivalent to $58,656 per year) |
$151,164 per year, including at least $1,128 per week paid on a salary or fee basis. |
|
July 1, 2027, and every 3 years thereafter |
To be determined by applying to available data the methodology used to set the salary level in effect at the time of the update. |
To be determined by applying to available data the methodology used to set the salary level in effect at the time of the update. |