Today the Department of Labor issued its long-awaited rule raising the fixed salary requirements for employees in the executive, professional, and administrative exemption categories (EAP) and increasing the standard salary level and the total annual compensation requirement for highly compensated employees (HCE). (Note that the State of Wisconsin does not recognize the HCE exemption, so that is not applicable to Wisconsin employees.)

• On July 1, 2024, the standard salary level for EAP will equal $844 per week and HCE total annual compensation level will equal $132,964.

• On January 1, 2025, the standard salary level for EAP will equal $1,128 per week and the HCE total annual compensation level will equal $151,164.
• The rule also adopts a mechanism to update earnings thresholds every three years.

The final rule will take effect on July 1, 2024.

No word yet on whether there will be any litigation to attempt to block the rule. For questions about the rule and what this means for your business, do not hesitate to contact an attorney on our Employment & Benefits Team.

This document provides information of a general nature regarding legislative or other legal developments, and is based on the state of the law at the time of the original publication of this article. None of the information contained herein is intended as legal advice or opinion relative to specific matters, facts, situations, or issues, and additional facts and information or future developments may affect the subjects addressed. You should not act upon the information in this document without discussing your specific situation with legal counsel.