This comprehensive article details the latest changes to the Department of Labor's (DOL) overtime regulations that could impact millions of employees across the country. From the article:
Employees in managerial, managerial or professional positions
The FLSA exempts bona fide executive, managerial, professional, and computer employees from minimum wage and overtime requirements. This exemption is commonly known as the “white collar” or executive, managerial, or professional exemption (“EAP exemption”). To qualify for an EAP exemption, employees must pass certain tests related to their job and be paid at or above the minimum salary threshold. Currently, the salary threshold is $684 per week ($35,568 per year), but the 2024 Regulation effectively doubles that figure by 2025.
Beginning July 1, 2024, the 2024 Regulations will increase the salary threshold for the EAP exemption to $844 per week ($43,888 per year). Then, on January 1, 2025, the EAP exemption threshold will increase to $1,128 per week ($58,656 per year). The goal of the 2024 Regulations is to establish effective earnings standards that help “define and limit” the FLSA's EAP exemption and update salaries based on current wage standards. The field sales exemption is unaffected because there is no preliminary salary threshold.
As businesses and workers alike navigate this new territory, Ken and Avery's insights are proving invaluable in helping us understand and adapt to these crucial regulatory developments. Read the full article here.
