New overtime exemption rule: What you need to know

The U.S. Department of Labor has released a much-anticipated final rule on the most common exemptions from overtime that impacts employers and the classification of their employees. The rule will increase the minimum salary required to qualify for exemptions under federal law for executive, administrative, professional and highly compensated employees, first on July 1, 2024 and again on January 1, 2025. We’ll go over what employers need to know about these changes and more. Listen in as we cover:

• [1:03] Current federal rules on overtime exemption
• [2:25] July 1, 2024 minimum salary requirement change
• [3:39] January 1, 2025 minimum salary requirement change
• [4:47] Employer options for complying with the new salary requirement
• [5:14] Steps to consider taking now
• [6:12] Changes to the highly compensated employee exemption
• [9:04] Impact in states with their own exemption rules

This content is based on generally accepted HR practices, is advisory in nature, and does not constitute legal advice or other professional services. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content. Employers are encouraged to consult with legal counsel for advice regarding their organization's compliance with applicable laws. This content is current as of the published date. 

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