The U.S. Department of Labor announced a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, which amends the regulations at 29 CFR part 541 under the Fair Labor Standards Act. Under this final rule made the following changes:
- Increases the standard salary level and the total annual compensation requirement for highly compensated employees (HCE).
- On July 1, 2024, the standard salary level will equal $844 per week and HCE total annual compensation level will equal $132,964.
- On January 1, 2025, the standard salary level will equal $1,128 per week and the HCE total annual compensation level will equal $151,164.
- Adopts a mechanism to update the earnings thresholds every three years.
The final rule will take effect on July 1, 2024. For more information, please visit Final Rule: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.