On April 26, 2024, DOL published a Final Rule on Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees (the “Final Rule”). Key changes in the Final Rule include: (i) on July 1, 2024, raising the salary level above which certain employees are exempted from federal overtime pay requirements, from $684/week to $844/week; (ii) on January 1, 2025, revising the methodology used to determine the salary level and raising it to $1,128/week; and (iii) establishing, as of July 1, 2024, automatic updates to the salary level every 3 years. The effective date for the Final Rule is July 1, 2024. The agency estimates an additional 1 million workers will become eligible for overtime pay in the initial update in July, and an additional 3 million workers will become eligible for overtime pay in the subsequent update in January.

CAPLAW developed the following FAQ to describe the new Overtime Rule and help Community Action Agencies (CAAs) prepare to implement changes. Note that state wage and hour laws may impose requirements that are more favorable to employees than the provisions of the FLSA. If state law establishes more protective standards than the FLSA, those higher standards apply in that state. Therefore, CAPLAW recommends that CAAs consult with an employment attorney licensed in their state to determine how best to comply with the new Overtime Rule and all applicable state and local rules.

Related Resources:

Final Changes to the FLSA Overtime Rule

Final Changes to the FLSA Overtime Rule

On April 26, 2024, DOL published a Final Rule on Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees (the “Overtime Rule”). In this webinar, CAPLAW discussed the Overtime Rule, impacts the changes could...

Overview of FLSA Principles

Overview of FLSA Principles

This FAQ addresses commonly asked questions about the federal Fair Labor Standards Act (FLSA), including its applicability to Community Action Agencies (CAAs). It provides an overview of key FLSA principles and discusses the exemptions CAAs most frequently use to classify...

Building Blocks of Employee Compensation

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Like many employers, CAAs are experiencing challenges retaining their existing staff and recruiting new employees in the wake of the COVID-19 pandemic. To help CAAs strategize for employee recruitment and retention in a post-pandemic world, CAPLAW has created this guide identifying some types of compensation they can offer, and the laws and regulations governing their salaries and benefits.