New FLSA Overtime Regulations for Exempt Employees

The United States Department of Labor has adopted new regulations as of July 1st, 2024, regarding the salary weekly requirements for exempt employees. To be exempt from FLSA overtime rules, exempt employees must meet a salary and duties test. The new salary requirements are as follows:

  1. The salary requirement before July 1, 2024, was $684 per week, which is equal to $35,568 per year.
  2. Effective as of July 1, 2024, the minimum salary payment per week will be increased to $844, or if annualized, will be equal to $43,088.
  3. On January 1, 2025, the $844 will be increased to $1,128 per week or if annualized, will increase to $58,656.
  4. In addition, the highly compensated employee duties exemption, which limits the number of duties requirements, has been increased from $107,432 per year to $132,964 per year, as of July 1, 2024, and will be increased to $151,164 per year, effective January 1, 2025.
  5. Finally, the Department of Labor rules provide that the annual salary exemption will be reviewed in 2027, and every three years thereafter, in order to keep the figures updated for inflation.

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