DOL Salary Threshold Law for July 1

On April 23, 2024, the U.S. Department of Labor (DOL) issued its much-anticipated final rule raising the salary threshold for employees to be exempt from federal overtime requirements under the Fair Labor Standards Act (FLSA). The new rule significantly increases the minimum salary requirement for executive, professional, and administrative employees (aka “white-collar workers”), effective July 1, 2024.

The new rule does not modify the duties test for either the white-collar or highly compensated employee exemption, which also must be satisfied for an employee to properly be classified as exempt from federal overtime pay requirements.

The new salary threshold will occur in two phases. Effective July 1, 2024, the threshold will increase to $844 per week, which is the equivalent of an annual salary of $43,888. Effective January 1, 2025, the threshold will then increase to $1,128 per week, which is the equivalent of an annual salary of $58,656.
 

What You will Learn

- How Employers need to prepare for these changes to be compliant by July 1, 2024
- What the DOL proposal includes and who it impacts more.
- How long Employers have to make changes.
- What communication details can effectively and positively impact newly non-exempt employees.
- How job responsibilities determine classification, not job titles.
- How to comply without the risk of a decrease in staff morale, increase in turnover, decrease in retention, and removal of benefits.
- How the automatic updates in salary threshold according to the consumer price index (CPI) can impact ongoing budget losses.
- How employers should confirm the duties tests before making negative decisions.
- How the Executive Exemption, Administrative Exemption, and Professional Exemptions can confuse the Employer's judgment on exempt and non-exempt employees.
- How Employers can use the Fair Labor Standards Act to prepare for identifying the proper compliance guidelines.
- What resources Employers can use to mitigate the negative response by employees.
- What Employers need to do to determine how state overtime regulations impact federal regulations and which supersedes them.
 

Why You Should Attend

Employers should learn that the previous overtime increase created severe complications regarding communications to impacted employees, a decrease in staff morale for those who believed that it was a demotion, loss of benefits when they decided to reduce hours, and costs, challenges with job descriptions and expected impact in Employer’s budget. It led to an increase in turnover and a decrease in retention.

Employers can take the time to review and prepare for setting guidelines on how they communicate the impact to employees, make effective decisions on how to cut costs without reducing employee hours or benefits, and develop a training program for managers and newly non-exempt employees.
 

Who will Benefit

- All Employers
- Business Owners
- Company Leadership
- Compliance professionals
- Payroll Administrators
- HR Professionals
- Managers
- Supervisors
- Employers in all industries
- Small business owners