The U.S. Department of Labor (DOL) announced a final rule, Defining and Delimiting the Exemptions for Executive Administrative, Professional, Outside Sales, and Computer Employees , which will take effect July 1. The final rule updates and revises regulations issued under section 13(a)(1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional (EAP) employees. Revisions include increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism that provides for the timely updating of these earning thresholds to reflect current earnings data.
The final rule will increase the standard salary level and the highly compensated employee total annual compensation threshold on the rule’s effective date on July 1, 2024, and January 1, 2025, when changes in the methods used to calculate levels become applicable.
The final rule also provides for future updates of these levels every three years to reflect current earnings data.
This new DOL overtime regulation should impact all ARA members. View an analysis from the labor and employment practice group Conn Maciel Carey.
