Contact Us
Categories
- FTC
- Emotional Support Animals
- Service Animals
- Employee Agreement
- remote work
- Federal Trade Commission
- LGBTQ
- Minors
- United States Department of Justice ("DOJ")
- work from home
- Arbitration
- Workplace health
- Trade Secrets
- Corporate
- Center for Disease Control
- Americans with Disabilities Act ("ADA")
- FFCRA
- Opioid Epidemic
- Occupational Safety and Health Administration (“OSHA”)
- COVID-19
- Temporary Leave
- Families First Coronavirus Response Act
- H.R.6201
- Health Care Law
- IRS
- Paid Sick Leave
- Treasury
- Coronavirus
- Worker Misclassification
- Labor Law
- Overtime
- Kentucky Unemployment Insurance Commission
- Sexual Harassment
- FMLA Retaliation
- overtime rule
- Employer Wellness Programs
- Genetic Information Nondiscrimination Act ("GINA")
- Kentucky minimum wage
- Minimum wage
- Employee Benefits
- Employment Non-Discrimination Act ("ENDA")
- Human Resource Department
- Independent Contractors
- OSHA
- Paid Time Off ("PTO")
- Sick Employees
- Wage and Hour
- ADA Amendments Act of 2008 (“ADAAA”)
- Employee Handbook
- Employee Misconduct
- Employment Discrimination Laws
- ERISA
- Fair Labor Standards Act (FLSA)
- Kentucky Civil Rights Act (“KCRA”)
- National Labor Relations Act (NLRA)
- National Labor Relations Board (NLRB)
- Overtime Pay
- Pregnancy Discrimination Act
- Social Media
- Social Media Policies
- Title VII of the 1964 Civil Rights Act
- U.S. Department of Labor
- Union
- Young v. UPS
- Adverse Employment Action
- Amazon
- Americans with Disabilities Act
- Bring Your Own Device
- BYOD
- Civil Rights
- Compliance
- copyright
- Department of Health and Human Services
- Department of Labor ("DOL")
- EEOC
- Employment Law
- Family and Medical Leave Act (“FMLA”)
- Intellectual Property
- Portal-to-Portal Act of 1947
- Security Screening
- U.S. Equal Employment Opportunity Commission (“EEOC”)
- U.S. Supreme Court
- Uncategorized
- Volunteer
- Work for Hire
- Federal contractors
- Kentucky Labor Cabinet’s Occupational Safety and Health Program (KOSH)
- Micro-unit
- Security Checks
- Specialty Healthcare & Rehabilitation Center of Mobile
- Cloud
- Creech v. Brown
- EEOC v. Hill Country Farms
- Equal Employment Opportunity Commission v. Kaplan Higher Education Corp.
- Lane v. Franks
- Mine Safety and Health Administration ("MSHA")
- Non-exempt employees
- Northwestern
- Shazor v. Prof’l Transit Mgmt.
- Web Content Accessibility Guidelines
- Whistleblower
- WorkSmart Kentucky
- "Ban-the-box"
- 2013)
- At-will employment
- Berrier v. Bizer
- Bullying
- Chapter 11 Bankruptcy
- Chenzira v. Cincinnati Children’s Hospital Medical Center
- Citizens United v. Federal Election Commission
- Companionship services
- Compensatory time off
- Conestoga Woods Specialties v. Sebelius
- Consumer Credit Protection Act (“CCPA”)
- Crystalline Silica
- Davis-Bacon and Related Acts
- Drug-Free Workplaces
- Earnings
- EEOC v. Fabricut
- EEOC v. The Founders Pavilion
- Ehling v. Monmouth-Ocean Hospital Service Corp.
- Federal Stored Communications Act (“SCA”)
- Giant Food LLC
- Government employees
- Government shutdown
- Home Health Care Workers
- Illness and Injury Reports
- Job applications
- Jury duty
- Kentucky Department of Workers’ Claims
- Kentucky Wage and Hour Act
- KYSHRM 2013
- Mandatory vaccination policies
- Maternity Leave
- McNamara O’Hara Service Contract Act
- Medical Exams
- NFL Bullying Scandal
- Payroll
- Permissible Exposure Level ("PEL")
- Private employers
- Sebelius v. Hobby Lobby Stores
- Senate Bill 157
- SHRM
- Small Business Administration (SBA)
- Violence
- Wage garnishment
- COBRA
- Contraceptive Mandate
- Defamation
- Defense of Marriage Act (“DOMA”)
- Employee Forms
- Employee Hazards
- Employee of the Month Programs
- Employee Training
- Employer Group Health Plans
- Employer Mandate
- Employment Practices Liability Insurance
- Endorsements
- Federal Workplace Agencies
- FICA
- Form I-9
- Freedom of Speech
- Gatto v. United Airlines and allied Aviation Services
- Health-Contingent Wellness Programs
- HIPAA
- Litigation
- Madry v. Gibraltar National Corporation
- Megivern v. Glacier Hills Incorporated
- Motivating Factor
- Obesity
- Online Account Protection
- Online Defamation
- Participatory Wellness Programs
- Patient Protection and Affordable Care Act
- Pennington v. Wagner’s Pharmacy
- Pension Plans
- Play or Pay
- Record Retention
- Reference checks
- Religious Employer
- Sequester
- severance pay
- Social Media Ownership
- Supervisor
- Supplemental Unemployment Compensation Benefits
- Tangible employment actions
- tax refund
- Telecommuting
- Title VII retaliation cases
- Troyer v. T.John.E Productions
- U.S. Citizenship and Immigration Services
- Unfair Labor Practice
- United States v. Quality Stores
- United States v. Windsor
- University of Texas Southwestern Medical Center v. Nassar
- Vance v. Ball State University
- Crisis Management
- Employee Arrests
- Employee photographs
- House Labor and Industry Committee
- Job Description
- Job Requirement
- Kentucky’s Whistleblower Act
- KRS 391.170
- Municipal Liability
- PhoneDog v. Kravitz
- posting requirements
- Public Sector Liability
- Right to Work Bill
- social privacy laws
- Strategic Enforcement Plan (SEP)
- White v. Baptist Memorial Health Care Corp.
- Wilson v. City of Central City
- Workplace Politics
- Class Action Waivers
- Criminal Background Checks
- Employee Performance Reviews
- Employee Personnel Files
- Federal Arbitration Act (FAA)
- Federal Department of Labor
- Hiring and Firing
- Informal Discussion Letter (“EEOC Letter”)
- Kentucky Labor Cabinet
- Labor and Pensions ("HELP")
- Retaliation by Association
- Salary Threshold
- Social Networking Online Protection Act (SNOP)
- Unemployment Benefits
- Workplace Discrimination, Harassment and Retaliation
- Business Insurance
- Communications Decency Act
- Employee Contracts
- Hosanna-Tabor Opinion
- Insurance Coverage
- Internet & Media Law
- Internet Defamation
- National Labor Relations Act
- Non-Compete Agreement
- Uniformed Services Employment and Reemployment Rights Act
- USERRA
TWO Threshold Hikes for the Price of One: DOL Issues Final Overtime Salary Threshold Rule
As tipped in September of 2023, the Wage and Hour Division of the Department of Labor (“DOL”) has finally released the Final Rule for raising the minimum salary threshold for employers eligible for exemption from overtime pay. While the new rule isn’t vastly different from the proposed rule, there are still enough substantive changes for employers to pay close attention.
The Good
The proposed rule came with a jump to a threshold of $1059 per week all at once, which would have been quite a shock for employers long compliant with a threshold of $684 per week, or $35,568 a year. The Final Rule eases the pain slightly – the first threshold increase on July 1, 2024, will only rise to $844 per week, or $43,888 per year, so that employers won’t take quite as strong of a hit as contemplated initially…
The Bad
…which will be cold comfort just six months later on January 1st, 2025, when the threshold rises ABOVE the proposed rule’s figure to an even higher threshold of $1,128 per week, or $58,656 per year.
The threshold for highly-compensated employees in the Final Rule does something similar – as proposed, it would have jumped from $107,432 per year to $143, 988, but now sees a smaller initial increase to $132,964 in July before jumping to $151,164 in January.
The Ugly
It has been proposed before, but the new Final Rule comes with an automatic adjustment mechanism to recalibrate the salary threshold every three years, starting July 1, 2027. Employers might have to get used to revisiting their employee rosters every three years as the threshold begins moving on a recurring basis.
The Takeaway
The last time a similar hike in the threshold was finalized, the rule was stayed by a court before taking effect and ultimately pulled by a new administration. Still, employers should operate on the assumption that are not one, but two, overtime salary threshold hikes coming within a few short months and begin planning accordingly. It’s important to note the Final Rule still does not change the other half of the analysis for overtime exemption: whether employees meet certain duties tests. Employers must understand that it isn’t quite as simple as whether or not a given employee earns above a threshold – the duties test still requires them to perform certain roles to qualify for exemptions.
With impending overtime salary threshold hikes on the very near horizon, the time to prepare is now – conduct a salary/duties audit of every employee, especially those currently exempt from the overtime requirement. For assistance with employee audits or any concerns with the new Final Rule and compliance, contact your McBrayer attorney today.
Cynthia L. Effinger, Member with McBrayer, is located in the firm’s Louisville office. Ms. Effinger’s practice is concentrated in the areas of employment law and commercial litigation. Her employment law practice is focused on drafting employment manuals and policies, social media, wage and hour, non-compete agreements and workplace discrimination. Ms. Effinger can be reached at ceffinger@mcbrayerfirm.com or (502) 327-5400, ext. 2316
Claire M. Vujanovic, Member with McBrayer, is located in the firm's Louisville office. Ms. Vujanovic's practice is concentrated in the areas of labor and employment law and includes NLRA compliance, drafting and reviewing employment manuals and policies, drafting severance, non-compete and employment agreements, and counseling clients related to overtime and wage and hour regulations, laws and claims and workplace discrimination. Ms. Vujanovic can be reached at cvujanovic@mcbrayerfirm.com or (502) 327-5400, ext. 2322.
This article does not constitute legal advice.