New Department of Labor Overtime Rule Goes Into Effect Today

As we reported in April [Read Here], the new Department of Labor salary threshold for exempt employees goes into effect today, July 1.  The new rule requires employers to pay exempt administrative, executive, professional, outside sales, and computer employees at least $844 a week and highly compensated employees at least $132,964 a year.  Additional increases are scheduled to go into effect on January 1, 2025.

On June 28, a federal district court ruled that the State of Texas as an employer does not have to comply with the new salary thresholds.  The order is limited to Texas because the state was the only party challenging the rule in that lawsuit.  Other lawsuits remain pending, but employers must comply with the new rule unless or until a court strikes it down.

If you have questions, please contact a member of Miller Johnson’s wage and hour practice group or your favorite Miller Johnson employment attorney.

Miller Johnson conducted two workshops to help employers prepare to comply with the new rule.  A recording of the workshop along with an on-demand training and toolkit are available for purchase here.