The DOL recently updated regulations related to exemptions from minimum wage obligations under the Fair Labor Standards Act (FLSA) for executive, administrative, professional, or computer employees, as well as highly compensated employees.

Effective Monday, July 1, 2024, workers must earn at least $844 weekly ($43,888 annually) to be classified as exempt under one of the white-collar exemptions. The earnings threshold for highly compensated employees will also increase to $132,964 per year.

After the initial increase in July, the salary threshold will again increase on January 1, 2025, to $1,128 per week ($58,656 annually) for white-collar workers and $151,164 annually for highly compensated employees. After that, the new regulations provide regular increases every three years beginning on January 1, 2027.

Please note: this revision does not affect the salary threshold for Washington employers, as the state has established its own salary threshold which exceeds the federal levels for white-collar exemptions. However, employers in Montana and Idaho with exempt workers will need to meet the new threshold established by the FLSA.