Fair Labor Standards Act
Overview
In the summer of 2023, the US Department of Labor (DOL) proposed changes to the Fair Labor Standards Act of 1938 (FLSA), which sets the rules for how employers pay employees. The FLSA governs federal minimum wage levels and which jobs are eligible for overtime, and it defines exemptions from overtime for jobs where the duties meet specific criteria (called Duties Tests), and where the wages exceed certain thresholds.
The final regulations were published on April 24, 2024. Effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888. That will increase to $58,656 on Jan. 1, 2025. Starting July 1, 2027, salary thresholds will update every three years. Human Resources is communicating now with managers to help them understand the proposed changes. Employees whose positions are currently classified as exempt and who fall below the salary threshold of $43,888 per year ($844 dollars per week), can expect to receive information about how their positions are affected no later than the end of May, 2024.