News


Back to News
May
28
2024
Labor Department Increases Overtime Salary Threshold To $58K Per Year In Final Rule.

The Department of Labor's Wage and Hour Division (DOL) issued a final rule that will increase the minimum salary threshold for the "white collar" overtime exemption under the Fair Labor Standards Act (FLSA).

Labor Department Increases Overtime Salary Threshold To $58K Per Year In Final Rule

The Department of Labor’s Wage and Hour Division (DOL) issued a final rule that will increase the minimum salary threshold for the “white collar” overtime exemption under the Fair Labor Standards Act (FLSA) from $35,568 to $58,656 per year. To be exempt from overtime pay under this provision, workers must be paid a salary of at least $58,656 and must also meet certain job duties for executiveadministrative, and professional employees. Workers with a salary below this salary threshold must be paid overtime if they work more than 40 hours a week.  Additional information is available at Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA) | U.S. Department of Labor (dol.gov).

DOL released the following implementation schedule for the final rule:

Compliance Date

Salary Level

 

Current

$35,568 per year
$683 per week

 

July 1, 2024

$43,888 per year
$844 per week

 

January 1, 2025

$58,656 per year
$1,128 per week

 

July 1, 2027

Will be calculated in 2027 and recalculated every 3 years. DOL will provide notice not fewer than 150 days before each future update.