CWC has written new Talking Points to help CWC members educate their managers and supervisors about the Labor Department’s 2024 revisions to its white-collar overtime regulations. These updated Talking Points supersede the Talking Points that CWC prepared in 2019 when DOL last revised the regulations.
The new rule increases the minimum salary threshold that employees must be paid to be considered exempt from overtime as an executive, administrative, or professional employee. DOL has created a process for adjusting the minimum salary level and the salary threshold for highly compensated employees automatically every three years.
Employer payments such as health care premiums, retirement account contributions, and car allowances are not considered part of the minimum salary. As long as an employee earns a minimum weekly salary of at least 90 percent of the minimum salary level, the additional amount may be made up through commissions, nondiscretionary bonuses, and incentive pay.
The new requirements will take effect in two stages, with the first increase on July 1, 2024, and the second on January 1, 2025.