U.S. Department of Labor Raises Salary Thresholds for Exempt Staff

In April, the U.S. Department of Labor (DOL) released a final rule that raises salary thresholds for employees to qualify as “exempt staff” under the federal Fair Labor Standards Act (FLSA). Under the FLSA, salaried employees are exempt from overtime pay requirements if they are employed in executive, administrative, and/or professional roles, and they receive a salary above a threshold set by the DOL. Currently, the salary threshold for executive, administrative, and professional staff is $684 per week, which annualizes to $35,568 per year.

Under the new rule, the executive, administrative, and professional staff exemption salary thresholds will increase twice over the next year:

• Beginning July 1, 2024, the threshold will increase to $844 per week, which annualizes to $43,888 per year.
• Beginning January 1, 2025, the threshold will increase to $1,128 per week, which annualizes to $58,656 per year.
  

Several lawsuits have been filed seeking to challenge various aspects of the new rule. However, as of the publication of this news alert, the rule remains scheduled to take effect on July 1.

Any DLCI or HR representatives with questions about the new rule or its impact on MIT employees can contact Anthony Moriello.