On April 23, the U.S. Department of Labor (DOL) released a final rule relating to overtime exemption for employees performing executive, administrative, and professional duties – the so called “white collar” exemptions – under the federal Fair Labor Standards Act. The final rule steeply raises the annual salary that must be paid for an individual to be classified as overtime-exempt from $35,568 to $58,656, an increase of 65%.
The total increase will be implemented in two steps, with the first taking effect on July 1, 2024, and the second on January 1, 2025. With July 1 fast approaching, employers must prepare for implementation. This LeadingAge article reminds providers to assess the impact on employees and plan for how their organizations will come into compliance, if they have not already done so. This DOL webpage provides additional information, including an FAQ resource.
