On April 23, 2024, U.S. Department of Labor’s (DOL’s) Wage and Hour Division (WHD) published its updated federal overtime rule.
The rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional (EAP), Outside Sales and Computer Employees, was initially proposed by the WHD in September 2023.
The final rule will include an increase to the EAP salary threshold, changing from $684 per week ($35,568 annually for a full-year hourly worker) to $1,128 per week (or $58,656 annually), which is nearly a sixty-five percent (65%) increase from the current levels that went into effect in 2020.
For highly compensated employees, the new EAP salary threshold was increased from $107,432 annually to $151,164 annually. Additionally, the final rule will include a three (3) year automatic adjustment mechanism for updating the salary threshold.
While the rule is scheduled to go into effect July 1, 2024, companies will have until Jan.1, 2025, to comply with the rule.
Oberman Law Firm will continue to monitor the status of the proposed effective date.
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Oberman Law Firm represents clients in a wide range of practice areas, including private equity, M&A, healthcare, corporate transactions, intellectual property, data privacy and security, regulatory compliance and governance, cross-border transactions, labor and employment, construction law, litigation, private clients’ services, corporate restructuring, and white-collar and governmental disputes.
As a firm, we offer the highest quality legal advice coupled with extraordinary and tailored service to deliver exceptional results to our clients. Our philosophy is to invest deeply in the brightest legal talent and build dynamic teams that operate at the pinnacle of respective practice areas. We believe in empowering our attorneys, encouraging entrepreneurialism, operating ethically and with integrity, and collaborating to bring the very best to every client engagement. These principles have guided us in building extraordinary and successful long-term partnerships with our clients.
