How Does the Overtime Exemption Threshold Impact Home-Based Care Agencies?

Polsinelli's article provides a comprehensive review of the Department of Labor's final rule raising overtime exemption thresholds. According to the federal Fair Labor Standards Act (FLSA), employers must provide overtime pay to employees who work over 40 hours in a week unless they are exempt under FLSA regulations. To qualify for exemption, employees must meet specific criteria, one of which is earning a salary equal to or exceeding the thresholds established by the Department of Labor (DOL). If an employee falls short of the threshold salary, they are entitled to overtime pay, regardless of meeting other exemption criteria.

​An overview of the overtime salary threshold changes:
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• From $35,568 per year to $43,888 per year, effective July 1, 2024. 
• On January 1, 2025, the threshold will increase to $58,656 per year or $1,128 per week.
• The highly compensated employee threshold will increase from $107,432 per year to $132,964 per year on July 1, 2024, and increase to $151,164 per year on January 1, 2025.
• Salary thresholds will increase every three years starting July 1, 2027, using up-to-date wage data.

For more information on the requirement for each exemption, CLICK HERE.