On August 30, the U.S. Department of Labor introduced a proposed rule to raise the minimum salary required for employees to be exempt from overtime (any hours over 40 hours per week) under the Fair Labor Standards Act (FLSA). Currently set at $35,568 per year ($684 per week), the proposed rule aims to increase this threshold to $55,000 per year ($1,059 per week), affecting over 3.5 million salaried employees who may no longer qualify for overtime exemption if implemented. The rule also raises the salary threshold for Highly Compensated Employees to $143,988 per year. Employers are advised to prepare for potential changes and assess employee eligibility for exemption accordingly.
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