As expected, the first lawsuits have been filed to challenge a new Department of Labor (DOL) “Overtime Rule” that significantly raises the minimum salary threshold for the exempt, administrative, and professional (EAP) and highly compensated employee (HCE) overtime exemptions under the Fair Labor Standards Act. The new rule is intended to take effect today, July 1, initially increasing the EAP salary minimum from $684/week ($35,568 annually) to $844/week ($43,888 annually) and the HCE salary minimum from $107,472 annually to $132,964 annually before another set of increases come on January 1, 2025. The plaintiffs in the lawsuits have each asked the court to immediately block enforcement of the new rule pending a ruling on the merits of the challenges, raising the question of whether employers will need to adapt to this change and, if so, when.
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