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.