On April 23, 2024, the U.S. Department of Labor announced a final rule regarding the restoration and extension of overtime protections.
The revisions include increases to the standard salary level and the total annual compensation threshold for highly compensated employees. Additionally, a mechanism has been introduced to provide for the timely and efficient updating of these earnings thresholds to reflect current earnings data. The first change will take effect on July 1, 2024.
For a detailed overview of the changes, please refer to the chart below or read more on the U.S. Department of Labor website.
| 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. |
