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DOL Raises Minimum Salary for Overtime Exempt Status



Employees are entitled to receive overtime premium pay when they work more than 40 hours in a workweek, unless they fall into a recognized exemption. One requirement of exempt status is that the employee receives a fixed salary that does not vary depending on the number of hours worked, and that the salary meets a minimum dollar threshold.


On April 23, 2024, the Department of Labor announced an increase to the minimum salary an employee must receive to be exempt from overtime pay requirements. The rule, which is slated to go into effect on July 1 of this year, will raise the salary requirement from $35,568 to $43,888 per year. An additional increase—to $58,656—will occur on January 1, 2025. The threshold will be automatically adjusted further every three years beginning in July of 2027.


It is likely that the rule will be challenged in court. In the meantime, businesses that have any employees earning less than $44,000 annually who are currently regarded as overtime-exempt may wish to review their options and otherwise prepare for compliance.


For additional information, contact Jill McQueen at (330) 563-4174 or email jmcqueen@aghattorneys.com.


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