June 5, 2024 • News

Eligibility and Exemptions for Overtime Pay to Change July 1, 2024

The U.S. Department of Labor’s recently published final rule on Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees (the “EAP” exemption) applies when:

• An employee is paid a salary, and
• The salary is not less than a minimum salary threshold amount, and 
• The employee primarily performs executive, administrative or professional duties.

Who will become eligible for overtime pay under the final rule?

• Starting July 1, 2024: most salaried workers who earn less than $844 per week (or $43,888/year)
• Starting January 1, 2025: most salaried workers who earn less than $1,128/week (or $58,656/year)
• Starting July 1, 2027, the eligibility thresholds will be updated every 3 years, based on current wage data.

The final rule, which takes effect July 1, 2024, marks the first increase to the EAP exemption salary levels since 1975. See the USDOL WHD website for a chart on the earnings thresholds for the EAP exemption as well as a brief explanatory video.