Wage and Hour Audit: Spring Cleaning for Job Classifications
Authors
Maria Fracassa Dwyer , Hannah K. Reisdorff
The U.S. Department of Labor has announced a Final Rule – Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, which amends the regulations at 29 CFR part 541 under the Fair Labor Standards Act.
The Final Rule increases the standard salary level and the total annual compensation requirement for highly compensated employees (HCE) as follows:
- On July 1, 2024, the standard salary level will equal $844 per week and HCE total annual compensation level will equal $132,964.
- On January 1, 2025, the standard salary level will equal $1,128 per week and the HCE total annual compensation level will equal $151,164.
The job duties test was not modified in the Final Rule.
What’s Next for Employers?
Companies should take this opportunity to audit their exempt classifications. In doing so, companies should undertake the following process:
- Identify all exempt classifications
- Compile and review job descriptions for accuracy
- Review salary ranges for each classification
- Gather data on overtime for each classification
If you need assistance conducting your wage and hour audit, please contact Maria F. Dwyer at mdwyer@clarkhill.com, Hannah K. Reisdorff at hreisdorff@clarkhill.com, or your Clark Hill attorney.
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