DOL’s New “Salary Threshold” Overtime Rule

Category: Federal & State Compliance

Written by Brian D. Barger and David F. Dabbs from McGuireWoods LLP on May 9, 2024

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On April 23, 2024, the U.S. Department of Labor (DOL) published its final rule increasing salary threshold amounts required for certain employees to be “exempt” from federal Fair Labor Standards Act (FLSA) overtime requirements. By expanding the effective scope of who is and is not required to be paid federal overtime for hours worked over 40 in a workweek, the final rule will have a significant impact on employer operations and budgets nationwide — with changes effective beginning on July 1, 2024.

Join McGuireWoods’ labor and employment team for an overview of the new rule and practical steps for evaluating and addressing employee FLSA classifications and related risk.

Topics

  • The new DOL exempt “salary threshold”/“salary level” contractor test
  • Key differences in the new 2024 test compared to DOL’s 2020 test
  • Issues and options for employers evaluating FLSA overtime eligibility
  • Prospects for litigation challenging the new rule