Detroit Regional Chamber
04/24/2024 | News release | Distributed by Public on 04/24/2024 08:56
DOL Unveils Final Overtime Rule
DOL Unveils Final Overtime Rule
April 24, 2024
Michigan Chamber of Commerce
Advocacy News - April 23, 2024
The U.S. Department of Labor released its final overtime rule April 23, ending months of speculation about how high they might raise the salary threshold.
Why it matters: For an employee to be exempt from being paid overtime (i.e., not eligible) they must: (1) be paid a salary; (2) be paid a salary above a specified threshold; and (3) meet the defined duties of the specific exemption such as executive, administrative, or professional (often referred to as "white collar" exemptions). These exemptions are important because non-exempt employees must be paid time and a half for any time worked past 40 hours a week.
The current salary threshold is $35,568/year ($684/week). The new rule, which goes into effect July 1, 2024, will change the thresholds, including the how highly compensated employees are treated. Here's how:
| 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, end 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. |