Labor and employment attorneys Ken Gray and Avery Locklear penned a thought-provoking article titled "Raising the Rate: DOL Expands Overtime Protections to Millions of Workers" in the July 2024 issue of Business North Carolina.
This comprehensive piece delves into the Department of Labor's (DOL) latest changes to overtime regulations, a move poised to impact millions of employees across the nation. From the article:
Employees in an Executive, Administrative, and Professional Capacity
The FLSA exempts bona fide executive, administrative, professional, and computer employees from minimum wage and overtime requirements. This exemption is commonly known as the "white-collar" or executive, administrative, or professional exemption (the "EAP Exemption"). To qualify for the EAP Exemption, an employee must meet certain tests regarding their job duties and be paid a salary not less than the minimum salary threshold amount. Currently, the salary threshold is $684 per week ($35,568 annually), but the 2024 Rule will practically double that number by 2025.
Beginning on July 1, 2024, the 2024 Rule will increase the EAP Exemption salary threshold to $844 per week ($43,888 annually). Then, on January 1, 2025, the EAP Exemption threshold will increase to $1,128 per week ($58,656 annually). The 2024 Rule's goal is to set effective earnings thresholds that help "define and delimit" the FLSA's EAP Exemption and to update salaries based on current wage standards. The outside sales exemption will not be impacted since there is not a preliminary salary threshold.
As businesses and workers alike navigate this new terrain, Ken and Avery's insights prove invaluable in understanding and adapting to these pivotal regulatory developments. Read the full article here.
