Last week, the DOL issued its Fall Regulatory Agenda which set an April 2024 target for issuing the much anticipated (and somewhat dreaded) Final Rule for increasing the overtime exemption salary requirements. https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202310&RIN=1235-AA39
The Department of Labor (Department) proposes updating and revising the regulations issued under the Fair Labor Standards Act implementing the exemptions from minimum wage and overtime pay requirements for executive, administrative, professional, outside sales, and computer employees. Significant proposed revisions include increasing the standard salary level to the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region (currently the South) $1,059 per week ($55,068 annually for a full-year worker) and increasing the highly compensated employee total annual compensation threshold to the annualized weekly earnings of the 85th percentile of full-time salaried workers nationally ($143,988). The Department is also proposing to add to the regulations an automatic updating mechanism that would allow for the timely and efficient updating of all the earnings thresholds. For additional information, please see the Department’s fall regulatory plan narrative statement.
With 2024 being an election year, the chances are good that the Biden administration will want to push through this Rule before the election. The implementation date could be any time during the last half of 2024 or even early 2025. But, as always, this is all subject to change without notice.
Stay Tuned and Be Audit-Secure™!
Lisa Smith, SPHR, SCP
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