Employers may need to raise exempt employee salaries or reclassify them as non-exempt if the new salary thresholds go into effect.

On April 23, 2024, the Department of Labor (DOL) issued a new rule (the DOL Rule) that will significantly raise the minimum salary thresholds for employees covered by certain overtime exemptions under the Fair Labor Standards Act (FLSA). The minimum salary thresholds are set to increase in phases — on July 1, 2024, January 1, 2025, and July 1, 2027 — with automatic increases every three years thereafter.