U.S. Department of Labor’s Final Rule on EAP Employees Takes Effect July 1, 2024

On April 23, 2024, the U.S. Department of Labor announced a final rule for defining the exemptions from minimum wage and overtime pay requirements for Executive, Administrative, and Professional (EAP) employees, which will take effect on July 1, 2024.

Final rule

The final rule takes effect July 1, 2024, and increases the standard salary level for the EAP exemption and adjusts the highly compensated employee total annual compensation threshold. The Department of Labor estimates that during the first year, four million workers will become newly entitled to overtime under the final rule.

Standard salary level for EAP exemption

Under the final rule, the standard salary level for the EAP exemption increases from $684 per week to:

• $844 per week, effective July 1, 2024, and
• $1,128 per week, effective January 1, 2025

For more information, refer to the U.S. Department of Labor’s website page, Final Rule: Restoring and Extending Overtime Protections.

Webinar planned

Yeo & Yeo’s HR Advisory Solutions Group is committed to providing our clients with guidance in implementing the final rule. Stay tuned for information about a webinar that will discuss restoring and extending overtime protections (the new salary amounts) and review the Fair Labor Standards Act executive, administrative and professional exemptions. Contact your Yeo & Yeo advisor for assistance.