New Salary Requirements for Exempt Employees
On April 23, 2024, the U.S. Department of Labor announced its final rule for new salary requirements for executive, administrative, and professional (EAP) employees. The final rule increases the standard salary level for exempt EAP employees as they are defined at 29 CRF part 541, and revises the rule to include increases to the salary levels for highly compensated employees. The rule takes effect on July 1, 2024, with additional changes being implemented on January 1, 2025, when changes in the methodologies become applicable. Finally, the final rule includes future updates of the salary levels every three years to reflect current earnings data. The scheduled changes are provided below.
| Date | Standard Salary Level | Highly Compensated Employee Total Annual Compensation Threshold |
| Before July 1, 2024 | $684 per week ($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 ($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 ($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, and 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. |
To be exempt from the Fair Labor Standard Act (FLSA) minimum wage and overtime provisions, EAP employees must generally meet the following requirements:
- Be paid a fixed salary;
- Be paid at least a specified weekly salary level; and
- Primarily perform executive, administrative, or professional duties as set out in the Department’s regulations.
Counties can prepare for these changes by evaluating whether EAP exempt employees are currently earning a salary of $43,888 and whether highly compensated employees (if applicable) are earning a salary of at least $132, 964. If not, counties should consider the economic impact on the county for increasing salaries to meet the requirements and the moral considerations for reclassifying employees. Exempt EAP employees who are not being paid a salary based on the new requirements by July 1, 2024, will have to be paid overtime for every hour worked over 40 hours even if the employee meets the EAP duty requirements as provided in the regulations.
For more information about the new salary requirements for exempt employees, please visit the DOL Wage & Hour Division's FAQs.