SCMP Breaking News - Labor & Employment
Year 9, Vol. 4 - April 24, 2024
On April 23, 2024, the US Department of Labor (“DOL”) issued a final rule raising the salary threshold to qualify for certain overtime exemptions under federal law. Most importantly, it significantly raises the minimum salary threshold for executives, professionals, and administrative personnel.
What does the Final Rule Provide?
Specifically, the DOL’s Final Rule provides the following:
Raises the salary threshold for exempt employees under the administrative, executive, and professional exemptions from $684 a week ($35,568 annualized) to $844 a week ($43,888 annualized) on July 1, 2024 and then, to $1,128 per week (or $58,656 annualized) on January 1, 2025. The salary threshold will be automatically updated every three (3) years starting on July 1, 2027.
The threshold for the “highly compensated employee" exemption will rise, first to $132,964 on July 1, 2024, and then to $151,164 on January 1, 2025. The HCE threshold will also be updated every three (3) years.
Important Points
For now, the DOL’s final rule will not apply to Puerto Rico.
After it is published in the Federal Register, the final rule will start to take effect on July 1, 2024.
We anticipate that numerous lawsuits will be filed in federal court challenging the final rule in the coming days and weeks.
SCMP will keep you updated as to any developments regarding this very important and crucial matter for employers in Puerto Rico.
Should you require further advice or assistance in relation to this matter, please contact us at (787) 945-0380.
Because of the general nature of this newsletter, nothing herein should be construed as legal advice or a legal opinion. SCMP Breaking News and all its content is property of Silva-Cofresí, Manzano & Padró, LLC
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