The first increase to the exempt salary threshold slated in the Department of Labor’s Final Rule released by the Department of Labor in April goes into effect July 1, 2024.  As of this date, the standard salary threshold for exempt employees will be $844 per week ($43,888 annually).  Exempt employees making less than this amount will need to be converted to hourly or their salary must be increased.  

Please note, employees who are not exempt are eligible for overtime compensation at the rate of time-and-one-half their regular rate of pay.  Public-sector employees may continue to substitute compensatory time off in lieu of cash overtime in compliance with their own personnel policies or applicable CBAs.  Details about the new regulations are available on the Department of Labor website.

For more information, please see our HR Alert on the topic or contact your HR Business Partner.