Important Compliance Update
The Department of Labor's (DOL) new overtime rule could impact your employee benefits. In light of the final rule that increases salary thresholds for overtime exemptions, employers should reevaluate the following items:
- Retirement Plans - Employers should review their retirement plan documents to determine how their plan defines compensation
- Other Benefits - Employers should review their plan documents to determine whether eligibility for health benefits or other fringe benefits depends on an employee's exempt status
Be aware of the changes on these dates:
- July 1, 2024 - the salary level for executive, administrative, and professional (EAP) employees will increase to $844 per week and $132,964 per year for highly compensated employees (HCEs)
- January 1, 2025 - The salary level for EAP employees will increase to $1,128 per week and $151,164 per year for HCEs
It is recommended that employers take steps now to prepare for the final rule before it takes effect.
Further explanation of the final rule can be found HERE
Dedicate more time focusing on what matters most, running and growing your business
Let us simplify your world, reach out, we can help!