The U.S. Department of Labor’s (DOL) updated overtime rule, effective January 1, 2025, will expand overtime pay eligibility to millions of workers by raising the salary threshold for the executive, administrative, and professional (EAP) exemptions under the Fair Labor Standards Act (FLSA) to $58,656 annually (or $1,128 per week).
This follows the Department’s announcement on April 23, 2024, of a final rule—Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees—that updates regulations under section 13(a)(1) of the FLSA. These updates, effective July 1, 2024, increase the salary level for exempt employees, the compensation threshold for highly compensated employees, and establish a regular review mechanism to update these thresholds based on current earnings data.
All information is sourced from the DOL, click here for more details.
EAP Exemption Eligibility Requirements
To qualify for the FLSA’s EAP exemption, employees must:
- Receive a fixed salary that doesn’t vary with work quality or quantity.
- Meet the minimum weekly salary level set by the DOL.
- Primarily perform executive, administrative, or professional duties as defined in 29 CFR part 541.
Highly compensated employees must meet additional criteria, including a higher salary level and simplified duties test.
Salary Level Increases: Schedule and Details
| DATE | STANDARD SALARY LEVEL | HIGHLY COMPENSATED EMPLOYEE TOTAL ANNUAL COMPENSATION THRESHOLD |
|---|---|---|
| Before July 1, 2024 | $684 per week (equivalent to $35,568 per year) | $107,432 per year, including at least $684 per week paid on a salary or fee basis. |
| July 1, 2024 | $844 per week (equivalent to $43,888 per year) | $132,964 per year, including at least $844 per week paid on a salary or fee basis. |
| January 1, 2025 | $1,128 per week (equivalent to $58,656 per year) | $151,164 per year, including at least $1,128 per week paid on a salary or fee basis. |
| July 1, 2027, and every 3 years thereafter | To be determined by applying to available data the methodology used to set the salary level in effect at the time of the update. | To be determined by applying to available data the methodology used to set the salary level in effect at the time of the update. |
Resources and Additional Information
- Final Rule: Defining and Delimiting the Exemptions
- Press Release: Biden-Harris Administration Finalizes Rule
- FAQs
- Small Entity Compliance Guide
- DOL Webinar: Restoring and Extending Overtime Protections
This DOL-hosted webinar covers the changes to section 13(a)(1) of the FLSA, including updates to salary thresholds required for exemption. For more details, view the webinar here.
