The U.S. Department of Labor has released its final overtime rule, which increases the minimum salary requirements for white-collar employees to qualify as exempt from the Fair Labor Standards Act's overtime pay mandates. Effective July 1, 2024, executive, administrative, or professional employees must earn a minimum salary of $43,888 annually to be classified as exempt, rising to $58,656 by January 1, 2025. For reference, the weekly breakdown would be $844/week for the July 1, 2024 change and $1,128/week for the January 1, 2025 change.

The rule also raises the annual compensation threshold for highly compensated employees and implements automatic updates to these thresholds every three years starting in 2027. Despite potential legal challenges, employers are advised to prepare by assessing their exempt workforce and strategically planning for the impact of the new regulations.*

We're committed to ensuring our clients remain compliant, and if anyone has questions about their current employee pay rates, please reach out to our Payroll Department for assistance at 229.227.9003 or payroll@newhiresolutions.net.

*To learn more, visit the DOL News Release here.