How to Comply With the 2024 FLSA Overtime Rule

Author: Brightmine Editorial Team

The US Department of Labor (DOL) has issued a new Fair Labor Standards Act (FLSA) overtime rule that increased the minimum annual salary for most exempt employees paid on a salary basis from $35,568 to $43,888, effective July 1, 2024. This rule also will:

• Increase the minimum annual salary for most exempt employees paid on a salary basis from $43,888 to $58,656, effective January 1, 2025;
• Increase the minimum annual salary for highly compensated employees who face a looser duties test from $107,432 to $132,964 on July 1, 2024, and then to $151,164 on January 1, 2025; and
• Adjust these minimum salary levels for inflation every three years, starting on July 1, 2027, to match the 35th percentile of weekly earnings of full-time nonhourly workers in the lowest-wage Census Region for most workers and to the 85th percentile for highly compensated employees.

An estimated 4 million workers who are currently overtime-exempt are projected to become eligible for overtime unless their employers raise their salaries, reorganize workloads, adjust work schedules or spread work hours in order to avoid paying overtime.

To prepare for the FLSA overtime rule, an employer should consider taking the following steps.