Horsemen's Notice on new Fair Labor Standards Act Compliance Thresholds
06/27/24Employers under the U.S. Department of Labor (“DOL”) under the Federal Law, Fair Labor Standards Act (“FLSA”) must meet a salary threshold to maintain an employee’s administrative, executive or professional exemption, referred to as the “white-collar” exemptions, from minimum wage and overtime rules under the FLSA. It is estimated three to four million U.S. employees will become eligible for overtime or receive salary increases to remain exempt.
Effective July 1, 2024: Exempt salary increases to $844/week ($43,888 annually). Employees making less than $844/week are not exempt and are eligible to receive overtime for all hours worked in excess of 40 hours per week.
Effective January 1, 2025: Exempt salary increases to $1,128/week ($58,656 annually).
Highly Compensated Employees. The Final Rule also impacts an exemption for highly compensated employees who do not meet other elements of the “white-collar” exemptions. For highly compensated employees, the minimum salary will be $132,964 on July 1, 2024, and increase to $151,164 on January 1, 2025.
Automatic Increases Beginning 2027. The Final Rule creates automatic increases to exempt salary thresholds in the future. The first increase is scheduled for July 1, 2027, and subsequent increases will occur every three years afterward. These increases will be based on up-to-date earnings data.
What can happen if you’re not following the law with employees under the Fair Labor Standards Act? Below are links from a thoroughbred trainer, Steve Assmusen's cases. New York has been on a crack-down on trainers for FLSA violations. Industry norms on paying employees the way Steve Assmusen has aren't compliant, horsemen need to be aware of the law and comply.