The U.S. Department of Labor (DOL) recently announced a final rule raising the minimum salary for exemptions from overtime pay. Here are key points:

1. The final rule affects exemptions for administrative, professional, executive, and highly compensated employees under the Fair Labor Standards Act (FLSA).

2. Effective July 1, 2024, the minimum salary for these exemptions increases to $844 per week. For highly compensated employees, it rises to $132,964 annually.

3. Further increases are slated for January 1, 2025, raising the minimum salary to $1,128 per week and $151,164 annually for highly compensated employees.

4. Updates to salary thresholds will occur every three years, with the next update scheduled for July 1, 2027.

5. Employers facing employees falling below the new threshold have options: reclassify them as nonexempt or raise their salary.

Steps to consider now include reviewing the final rule, evaluating current employee classifications, assessing business impact, and staying informed about potential updates. These changes may significantly affect small businesses, necessitating early preparation.

Read more about this overtime rule at https://sbshrs.adpinfo.com/blog/new-overtime-exemption-rule-5-key-facts-you-need-to-know