DOL Ultimate Additional time Rule to Take Impact July 1

On April 23, 2024, the U.S. Division of Labor (DOL) introduced a remaining rule to amend present necessities workers in white-collar occupations should fulfill to qualify for an extra time exemption underneath the Honest Labor Requirements Act (FLSA). The remaining rule will take impact on July 1, 2024.

NOTE: New York’s Division of Labor (NYDOL) amended its Labor Code final fall to extend the wage threshold govt, administrative, {and professional} (EAP) workers should meet to qualify for the state’s wage fee exemptions. As of March 13, 2024, EAP workers who earn lower than $1,300 per week are topic to the identical wage fee protections as different nonexempt workers.

The NYDOL’s yearly will increase to the thresholds for govt and administrative workers for the following three years are as follows:

New York Metropolis, and Nassau, Suffolk, and Westchester counties:

• $1,200 per week ($62,400 per 12 months) on Jan. 1, 2024
• $1,237.50 per week ($64,350 per 12 months) on Jan. 1, 2025
• $1,275 per week ($66,300 per 12 months) on Jan. 1, 2026

The remainder of New York State (areas exterior of New York Metropolis and Nassau, Suffolk and Westchester counties):

• $1,124.20 per week ($58,458.40 per 12 months) on Jan. 1, 2024
• $1,161.65 per week ($60,405.80 per 12 months) on Jan. 1, 2025
• $1,199.10 per week ($62,353.20 per 12 months) on Jan. 1, 2026

Elevated Wage Stage for Additional time Exemption

The FLSA white-collar exemptions apply to people in govt, administrative, skilled, and a few exterior gross sales and computer-related occupations. Some extremely compensated workers can also qualify for the FLSA white-collar extra time exemption.

To qualify for this exemption, white-collar workers should fulfill the usual wage degree check, amongst different standards. This wage degree is a wage threshold that white-collar workers should obtain to qualify for the exemption.

Beginning July 1, 2024, the DOL’s remaining rule will increase the usual wage degree from:

• $684 to $844 per week ($35,568 to $43,888 per 12 months); and
• $107,432 to $132,964 per 12 months for extremely compensated workers.

On Jan. 1, 2025, the usual wage degree will then enhance from:

• $844 to $1,128 per week ($43,888 to $58,656 per 12 months); and
• $132,964 to $151,164 per 12 months for extremely compensated workers.

Automated Updates for Wage Thresholds

The DOL’s remaining rule additionally contains mechanisms permitting the company to robotically replace the white-collar wage degree thresholds with out having to depend on the rulemaking course of. On January 1, 2025, the normal wage degree for white-collar workers will enhance from $844 to $1,128 per week ($43,888 to $58,656 per 12 months) and from $132,964 to $151,164 per 12 months for extremely compensated workers.

Efficient July 1, 2027, and each three years thereafter, the DOL will enhance the usual wage degree. The company will apply up-to-date wage knowledge to find out new wage ranges.

Affect of the Ultimate Additional time Rule on Employers

The primary wage degree enhance in July is predicted to affect almost a million employees, whereas the second enhance in January is predicted to have an effect on roughly three million employees. Employers ought to develop into acquainted with the ultimate rule and consider what modifications they might must undertake to adjust to the rule’s necessities. Authorized challenges to the rule are anticipated, which can delay the ultimate rule’s implementation.

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Know-how to Observe Additional time for Compliance with the Ultimate Rule

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