Today’s Warner Employment News from the Law Shanty video addresses the recent U.S. Department of Labor’s Fair Labor Standards Act Final Rule raising the salary level test. Unless a lawsuit is filed, this adjustment will go into effect on July 1, 2024, with an automatic accelerator in place to raise it again on Jan. 1, 2025. But that’s not all. The salary levels will be automatically raised yet again in 2027 using the same formula and without new rulemaking. Additionally, the highly compensated level test will be raised on July 1, 2024, and raised again on Jan. 1, 2025.
Steve provides a history of the salary level test rulemaking and how the various administrations have structured these in the past. Although we haven’t uncovered any lawsuits to challenge this rule presently, Warner is staying attuned to any opposition that could impede this new rule. Steve highlights the rule’s unique features and encourages employers to consider which positions within their workforce could be impacted by these raises. Steve also suggests employers contact legal counsel to explore their options for navigating these changes.
