The US Department of Labor: On 22-04-2024, the Department of Labor (“Department”), finalised rule revising and updating the regulations issued under the Fair Labor Standards Act, dealing with compensation thresholds for overtime eligibility, that shall be effective from 01 July 2024, increasing the threshold from $35,568 to $43,888, and further increasing it to $58,656 by 01 January 2025.
Applicability: The regulations apply to executive, administrative, professional, outside sales, and computer employees, and highly compensated employees, to adjust their threshold receiving a salary less than $58,656 annually.
Key Points:
- Increase in standard salary level
- Increase in the highly compensated employee total annual compensation threshold
- Incorporating mechanism to update salary and compensation thresholds
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Data-driven updating of salary thresholds every three years to determine new salary levels
Note: The final rule has been approved by the Office of Management and Budget’s Office of Information and Regulatory Affairs and has been submitted to the Office of the Federal Register (OFR) for publication. It is currently pending placement on public inspection at the OFR and publication in the Federal Register.
