We wanted to remind employers that the Department of Labor (DOL) has closed the comment period for the Proposed Rule and its implementation will be somewhere in 2024.

This rule increases the Salary Threshold for the exemptions but does not modify any of the other requirements.

The proposed rule would increase the minimum salary from $684 per week ($35,568 per year) to $1,059 per week ($55,068 per year). This would be a 55% increase from the current level that became effective in January 2020. The DOL also seeks to increase the annualized salary threshold for the exemption for “highly compensated employees” (HCE) from the current $107,432 per year to $143,988 per year.

Finally, note that 6 states (Alaska, California, Colorado, Maine, New York, Washington) have a minimum salary requirement for overtime exemption that exceeds the current federal level and will further increase on January 1, 2024.

Resources

• DOL Announces Long-Awaited Proposal to Raise Exempt Salaries (VensureHR)

Source References

• New Year, New Rules? 2024 May See Implementation Of The DOL’s Proposal For Increased Exemption Salary Thresholds While State-Specific Thresholds Are Also Set To Increase (Polsinelli PC, Polsinelli LLP in California, Polsinelli PC (Inc) in Florida.)

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