Department of Labor and the Fair Labor Standards Act Exempt Salary Threshold Increase
On April 23, 2024, the U.S. Department of Labor (“DOL”) issued its final rule raising the exempt classification minimum salary threshold. The change is effective beginning July 1, 2024. In addition, the salary threshold for highly compensated employees will raise as well. Finally, the rule also sets automatic increases every three years starting in January 2027. The final rule raises the minimum salary threshold to $844 per week, up from $684 per week. The next increase to $1,128 per week would be on January 1, 2025. For highly compensated employees the minimum threshold increases to $132,964 on July 1, 2024, with the next salary increase to $151,164 becoming effective January 1, 2025. Employment attorney Shannon Hamilton takes a look at the rule in this Stites & Harbison Client Alert.