Overview of Proposed Changes to Overtime Exempt Salary Levels
On April 23, 2024, the United States Department of Labor published its final rule amending the overtime regulations under the Fair Labor Standards Act (“FLSA”). Specifically, the final rule increases the salary thresholds required for employees to be classified as exempt from overtime requirements.
New Thresholds and Effective Dates:
The new salary threshold increases will be implemented in two (2) phases.
The first salary threshold increase must take effect on July 1, 2024. The salary thresholds will be as follows:
The second salary threshold increase must take effect on January 1, 2025. The salary thresholds will be as follows:
Impact on Businesses:
Employees earning below the new salary thresholds may be eligible for overtime pay, even if they meet the duties test for exempt status. It is crucial for employers to review and potentially adjust the classification of their employees to ensure compliance with the updated regulations. Employers should ensure that their payroll and HR systems are updated to reflect the new salary thresholds by the effective dates to avoid any compliance issues.
Non-compliance with the updated overtime regulations can result in costly penalties and legal repercussions for businesses.
Tambra Offield
Officer Manager
East Texas Electric Cooperative
“I first met Kristina Dietrick and learned of HR Partners at last year’s NRECA Interact conference. Her presentation on developing an employee handbook was very informative. Kristina sent me all the materials and introduced me to the staff who worked closely with myself and our General Manager to develop our new employee handbook specifically to fit our needs.
We were so impressed that when our Board President asked about doing an evaluation of our General Manager’s performance, that we immediately thought of HR Partners.”
We can’t thank HR Partners enough for all their help with our GM’s review process. Their knowledge and experience made the process so easy.
I have recommended CBS to all 10 of our distribution cooperative members for all their human resources needs.