LEGAL ALERT! FLSA Salary Basis Final Rule is Released
- Jeffrey Ball, Esq.
- 23 abr 2024
- 1 Min. de lectura
Actualizado: 25 abr 2024
On April 23, 2024, the U.S. Department of Labor announced a significant revision to the exemptions for executive, administrative, professional, outside sales, and computer employees under the Fair Labor Standards Act (FLSA). Set to take effect on July 1, 2024, the final rule, titled "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees," introduces pivotal changes to Section 13(a)(1) regulations.
Key Changes in the Final Rule:
Increase in Salary Thresholds:
Prior to July 1, 2024: The standard salary level is $684 per week ($35,568 annually), with a highly compensated employee threshold of $107,432 annually, including at least $684 per week on a salary basis.
Effective July 1, 2024: The standard salary level will rise to $844 per week ($43,888 annually), and the threshold for highly compensated employees will increase to $132,964 annually, including at least $844 per week on a salary basis.
From January 1, 2025: The standard salary level will further increase to $1,128 per week ($58,656 annually), with the threshold for highly compensated employees moving to $151,164 annually, including at least $1,128 per week.
Adaptive Updating Mechanism:
Effective from July 1, 2027, and every three years thereafter, the salary and compensation thresholds will be adjusted according to a predefined methodology based on current earnings data.
This update aims to align the earning thresholds with modern-day earnings statistics, ensuring that the exemptions accurately reflect the current economic landscape. Employers are advised to review and adjust their payroll systems in accordance with these new regulations to remain compliant with the FLSA standards.
Attend our upcoming webinar as we discuss the new rule and how to prepare!