The U.S. Department of Labor (USDOL) has enacted the final ruling for revisions to section 13(a)(1) of the Fair Labor Standards Act, implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional (EAP) employees. The first phase of the ruling is effective July 1, 2024 and the second phase is effective January 1, 2025. Revisions include increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism that provides for the timely and efficient updating of these earnings thresholds to reflect current earnings data. Below is a summary table of the updated standards and criteria for implementation in your business.

For more information about this new ruling and other labor standards that may affect your business, please visit the U.S. Department of Labor website. For payroll support or advice on how to implement this in your business, please schedule a consultation with us.

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