![\"dol](\"https:\/\/gtm.com\/business\/wp-content\/uploads\/2024\/04\/pexels-vlada-karpovich-7433853.jpg\")
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On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule to amend current requirements<\/a> employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The final rule<\/a> will take effect on July 1, 2024.<\/p>\n NOTE:<\/strong> New York’s Department of Labor (NYDOL) amended its Labor Code<\/a> last fall to increase the salary threshold executive, administrative, and professional (EAP) employees must meet to qualify for the state\u2019s wage payment exemptions. As of March 13, 2024, EAP employees who earn less than $1,300 per week are subject to the same wage payment protections as other nonexempt employees.<\/p>\n The NYDOL’s yearly increases to the thresholds for executive and administrative employees for the next three years are as follows:<\/p>\n New York City, and Nassau, Suffolk, and Westchester counties:<\/p>\n The rest of New York State (areas outside of New York City and Nassau, Suffolk and Westchester counties):<\/p>\n The FLSA white-collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer-related occupations. Some highly compensated employees may also qualify for the FLSA white-collar overtime exemption.<\/p>\n To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption.<\/p>\n Starting July 1, 2024, the DOL\u2019s final rule increases the standard salary level from:<\/p>\n On Jan. 1, 2025, the standard salary level will then increase from:<\/p>\n The DOL\u2019s final rule also includes mechanisms allowing the agency to automatically update the white-collar salary level thresholds without having to rely on the rulemaking process. On January 1, 2025, t<\/span>he standard salary level for white-collar employees will increase from $844 to $1,128 per week ($43,888 to $58,656 per year) and from $132,964 to $151,164 per year for highly compensated employees.<\/p>\n Effective July 1, 2027, and every three years thereafter, the DOL will increase the standard salary level. The agency will apply up-to-date wage data to determine new salary levels.<\/p>\n The first salary level increase in July is expected to impact nearly one million workers, while the second increase in January is expected to affect approximately three million workers. Employers should become familiar with the final rule and evaluate what changes they may need to adopt to comply with the rule\u2019s requirements. Legal challenges to the rule are anticipated, which may delay the final rule\u2019s implementation.<\/p>\n View a list of FAQs<\/a> regarding the final rule.<\/p>\n \u00a92024 Zywave, Inc. All rights reserved.<\/em><\/p>\n Whether or not you have employees that will be impacted by the DOL’s final rule, you need a payroll platform that can accurately track salaries and overtime, and allow you to easily make adjustments without burdening your managers or employees. isolved<\/a>, GTM’s human capital management solution provides employers with the tools to keep up with employment tax rates, calculate liabilities, create and access reports, and make payments. Plus it customizes your employee experience and enables self-service onboarding, changes to direct deposit and personal information, tax filing, and more. Request a free quote<\/a> to learn more.<\/p>\n","protected":false},"excerpt":{"rendered":" Employers should become familiar with the DOL final rule and evaluate what changes they may need to adopt to comply with the rule\u2019s overtime requirements.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[232],"tags":[79,5,54,342],"post_folder":[],"class_list":["post-15512","post","type-post","status-publish","format-standard","hentry","category-gtm-biz-blog-isolved","tag-compliance","tag-department-of-labor","tag-overtime","tag-salary-threshold"],"_links":{"self":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/15512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/comments?post=15512"}],"version-history":[{"count":5,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/15512\/revisions"}],"predecessor-version":[{"id":15521,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/posts\/15512\/revisions\/15521"}],"wp:attachment":[{"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/media?parent=15512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/categories?post=15512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/tags?post=15512"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/gtm.com\/business\/wp-json\/wp\/v2\/post_folder?post=15512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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Increased Salary Level for Overtime Exemption<\/h2>\n
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Automatic Updates for Salary Thresholds<\/h2>\n
Impact of the Final Overtime Rule on Employers<\/h2>\n
Technology to Track Overtime for Compliance with the Final Rule<\/h2>\n