Littler | Department of Labor Publishes Final Rule to Update the Salary Level for Overtime Eligibility

The U.S. Department of Labor released a final rule on April 23, 2024, raising the salary threshold to qualify for certain overtime exemptions under federal law. Most importantly, it significantly raises the minimum salary threshold for certain “white collar” workers—executives, professionals, and administrative personnel. If the rule takes effect, employers will need to raise those employees’ salaries or reclassify them as eligible for overtime. But the rule relies on a methodology similar to one that was found invalid in 2016. Litigation is therefore likely, and the rule could still be blocked. Learn More