Per the notice below, the United States Department of Labor (USDOL) has updated its salary thresholds for overtime exempt employees.

Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees

Today, the U.S. Department of Labor announced a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, which amends the regulations at 29 CFR part 541 under the Fair Labor Standards Act.  The final rule follows a Notice of Proposed Rulemaking published on September 8, 2023, in the Federal Register and makes the following changes:

• Increases the standard salary level and the total annual compensation requirement for highly compensated employees (HCE).
• On July 1, 2024, the standard salary level will equal $844 per week and HCE total annual compensation level will equal $132,964.
• On January 1, 2025, the standard salary level will equal $1,128 per week and the HCE total annual compensation level will equal $151,164.
• Adopts a mechanism to update the earnings thresholds every three years.

The final rule will take effect on July 1, 2024.  For more information, go to: Final Rule: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.