Fair Labor Standards Act

"On April 26, 2024, the U.S. Department of Labor (Department) published a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, to update and revise the regulations issued under section 13(a)(1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional employees. Revisions included increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for updating these earnings thresholds to reflect current earnings data. On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the Department’s 2024 final rule. Consequently, with regard to enforcement, the Department is applying the 2019 rule’s minimum salary level of $684 per week and total annual compensation requirement for highly compensated employees of $107,432 per year."

Under the FLSA:

• Employers cannot exempt an employee from eligibility for overtime pay unless the employee’s salary is above the FLSA salary threshold;
• The FLSA salary threshold is $684/week, or $35,568 for full-year employees;
• Employees earning less than the new threshold will be entitled to overtime compensation when working more than 40 hours in a given week;
• The Department of Labor makes no provision for part-time, salaried employees — a salaried employee who earns less than $684 (gross wages) per week is not exempt from FLSA compensation rules.

For additional details, please visit the U.S. Department of Labor’s Wages and the Fair Labor Standards Act page.