What's New: Judge Sean D. Jordan of the U.S. District Court for the Eastern District of Texas has issued a temporary restraining order specifically for the State of Texas as an employer. What This Means: The first phase of the DOL Overtime Rule will still go into effect as scheduled on Monday, July 1, 2024, but the State of Texas is temporarily exempt from the rule's implementation. However, businesses in Texas and across the nation must still comply. What's Next: Effective July 1, the DOL Overtime Rule will immediately raise the exemption threshold annual salary to $43,888 per year, followed by a second increase to $58,656 on January 1, 2025, and then updating that rate every three years.   The Rule will take effect on Monday, July 1.    For more information on how this could impact your business, consult your labor attorney and the Department of Labor’s website and FAQ list.      AAHOA Background AAHOA and its members have been vocal in their opposition to the rule. Last year, AAHOA submitted comments to the Department of Labor. President & CEO Laura Lee Blake stated that AAHOA could "not support or recommend" the then-proposed increased salary threshold.  Earlier this month, AAHOA sent an Advocacy Action Alert to its members, asking them to contact their federal representatives to voice their opposition to and concerns about the rule. The alert was sent in response to Rep. Tim Walberg's (MI-05) introduction of H.J.Res.166 to block the rule from taking effect. Senator Mike Braun (R-IN) is leading the Senate companion. AAHOA Members have discussed the rule's impact on their properties in meetings with various legislators.  Additionally, AAHOA is a Partnership to Protect Workplace Opportunity member, which has opposed the rule.     Deeper Dive In April, the DOL issued a final Rule to increase the salary threshold, determining whether employees are exempt from overtime pay under the Fair Labor Standards Act (FLSA). Notable provisions include: Standard salary threshold increase: Effective July 1, 2024, the standard salary threshold will increase to $844 per week ($43,888 annually). It will rise again on January 1, 2025, to $1,128 weekly ($58,656 annually). Highly compensated employee (HCE) threshold increase: The salary threshold for HCEs will be $132,964 annually starting July 1, 2024, and will increase to $151,164 on Jan. 1, 2025. Automatic updates: Starting July 1, 2027, the earnings thresholds will be automatically updated every three years based on wage data.     How to Prepare for the New Requirements Review Your Employees’ Job Duties: Make sure all employees are classified correctly as exempt or non-exempt based on their job duties. This DOL fact sheet provides guidance on determining exempt status. Review Your Payroll Records: Identify all salaried exempt employees with wages below the new threshold. For these employees, you have several options, including 1) Raising their salary above the new limit or 2) Changing their status to non-exempt and properly tracking hours to pay overtime when appropriate.   Consult Legal Counsel: For all decisions, AAHOA strongly recommends that you consult with an employment attorney licensed in your state to determine how best to comply with the Final Rule and all applicable state and local rules. For More Information DOL: Final Rule on Overtime Protections DOL: Final Rule Webinar DOL: Earnings Threshold Chart DOL: Small Business Compliance Guide DOL: Final Rule FAQ   *AAHOA is not providing legal advice on how best to comply with the final Rule. AAHOA encourages all members to consult with their legal counsel to ensure full compliance.   Leave a Comment 💬