On April 23, 2024, the Department of Labor (“DOL”) announced a final rule that raises the salary thresholds for specific overtime exemptions under the federal Fair Labor Standards Act (“FLSA”). The new rule affects employees who qualify under the federal rule’s executive, administrative, and professional exemptions (there is some nuance here, but we can skip that for now).
Federally, the annual salary threshold for executive, administrative, and professional employees is $35,568.00. Effective July 1, 2024, however, this threshold will increase to an annual salary equivalent of $43,888.00. In addition, beginning on July 1, 2027, the aforementioned salary threshold will be updated every three years.
How do the recent updates under FLSA affect California employers? Not much—at least not at present—given that California’s salary exemption threshold is higher than the federal analogue under FLSA. Having said that, California employers who have employees out-of-state should consider the new FLSA rules while engaging in an exemption analysis of those employees.
MNK Law will continue to monitor the implementation of the final rule. For more information as to how the new DOL salary threshold affect your business, please contact us at info@mnklawyers.com.
This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.
