April 23, 2024

Today, the U.S. Department of Labor (DOL) issued its final rule increasing the salary threshold required to exempt salaried bona fide executive, administrative or professional employees from federal overtime pay requirements.

The final rule will be effective July 1, 2024, and raises the salary threshold to $43,888 and on January 1, 2025, increases the threshold to $58,656 when the new methodology takes effect. Beginning in July 2027, the salary thresholds will update every three years. In the final rule, DOL noted that it intends to issue technical assistance to help employers comply with the Fair Labor Standards Act (FLSA) and will coordinate with appropriate federal agencies on supporting Medicaid-funded service providers impacted by this rule.

Additional information can be found on DOL’s webpage and FAQ page for this final rule.