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US Department of Labor’s Final Rule on Fair Labor Standards Act on White-Collar Exemptions is Ready to Set New Salary Requirements

Timeline of final rule: On September 8, 2023, the US Department of Labor released its proposed rules. As such, the federal agency has a target date of April, 2024 for the enactment of the final rule.

The Proposed Rule: The salary threshold would be increased from the current $684 per week ($35,568 per year) to $1,059 per week ($55,068 per year.) depending on the earning data at the time the final rule takes effect.

Effect of an Increase in the Salary Threshold: The numbers of salaried exempt employees would decrease with an increase in the number of employees entitled to overtime.

It is anticipated that the Final Rule will be contested in the courts. Such litigation will be contentious and probably end up in the US Supreme Court.

The best practice for a company having salaried exempt employees is to monitor the US Department of Labor and the Courts for further guidance.

Questions? Contact Anthony J. Caruso, Jr at 630-377-1554 or by email.

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