Are You Prepared for Expanded Regulations on Employee Wages in 2024?

Remember 2016? As Yogi Bera said, “It’s de ja vu all over again!” In August 2023, the Department of Labor (DOL) issued proposed regulations to increase the salary basis threshold under the Fair Labor Standards Act (FLSA) for exempt employees from $684 per week ($35,568 annually) to $1,059 per week ($55,068 annually) The proposed weekly amount could increase by the time final rules are released this spring since it will be based on the 35th percentile of earnings of full-time salaried workers at the lowest-wage census region (currently the South).

Although these final rules are expected to be challenged, employers need to prepare now for this change. Here are some guidelines to help with that process.