FLSA Updates

By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director, Compensation Services
Published January 30, 2024

The federal Fair Labor Standards Act’s (FLSA’s) salary threshold has been a highly debated topic over the years. The current salary threshold, set in 2020, is $684 per week. 

However, the U.S. Department of Labor (DOL) is working to increase this threshold “to ensure that the FLSA’s intended overtime protections are fully implemented.” Last fall, a proposed rule was announced with the intent to increase the FLSA salary threshold to $1,059 per week ($55,068 per year). This represents a 55 percent increase.

Since the new proposal, the DOL has been combing through more than 33,000 comments received both in favor of and against their proposed plan, and its recently released semi-annual regulatory agenda sets an April 2024 date for release of the final rule.

While we don’t yet know what the official new FLSA salary threshold will be, the DOL has indicated the actual salary threshold may be based on earnings data as of the date the final rule takes effect. Therefore, the new salary threshold may be even higher than the projected $1,059 per week. 

We also don’t know when the final rule will take effect. However, the Congressional Review Act requires a minimum 60-day notice to employers before major rule changes go into effect. 

Whether the DOL will meet its April 2024 target date remains to be seen. HR Source will stay on top of news and updates and share information as it becomes available.

Members with questions can contact us through the HR Hotline Online or at 800-448-4584.