Insights
Department Of Labor Finalizes Rule Significantly Increasing Salary For Overtime Exemption
Anne Willis Chapman, Esq.
Florida Board Certified in Labor and Employment, Business Litigation
Effective July 1, 2024, the required annual salary for a worker to be exempt from the overtime requirements of the FLSA increases to $43,888 (or $844 weekly). Thereafter, effective January 1, 2025, the annual salary requirement will increase to $58,656 (or $1,128 weekly). Currently, the salary requirement is $35,568 (or $684 weekly). Thus, the number of individuals eligible for overtime will likely increase substantially in 2025.
The change is the result of the Department of Labor’s final rule issued earlier this month which made three notable changes including (1) increasing the minimum salary to meet the qualifications of the white collar FLSA exemptions; (2) increasing the total compensation for highly compensated employee exemption to $132,964 (from the current $107,432) effective July 1, 2024 and then to $151,164 on January 1, 2025; and (3) mandating periodic automatic increases in the salary thresholds for exemptions.
Employers should audit their workforces to determine if salary adjustments should be made for positions currently classified as exempt to ensure compliance with the FLSA or if a position should be changed to an hourly non-exempt FLSA classification.
If you have any questions about the FLSA exemptions, you should contact our Board Certified Labor and Employment Law Attorney Anne Willis Chapman at achapman@blalockwalters.com or at 941.748.0100.
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