Good afternoon, NAHC members,
Today, the Biden-Harris Administration announced the finalization of a rule regarding salary thresholds for exempting salaried bona fide executive, administrative, or professional employees (EAP) from federal overtime pay requirements.
Beginning July 1, 2024, the salary threshold, currently set at $684 per week or $35,568 per year, will increase to $844 per week or $43,888 per year. However, this is just the first step. Effective January 1, 2025, the threshold will rise again to $1,128 per week or $58,656 per year. It's important to note that this final threshold surpasses the initially proposed figure of $1,059 per week or $55,068 per year.
Furthermore, the rule also elevates the salary thresholds for qualifying as a Highly Compensated Employee (HCE) from $107,432 to $151,164. This adjustment is notably higher than the proposed rule's threshold of $143,988.
NAHC is reviewing the final rule and will provide a comprehensive summary soon. In the meantime, you can access the complete rule here.
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Kristen Wheeler
Executive Director of Private Duty at NAHC
National Association for Home Care & Hospice
Washington DC
+1 (202) 547-7424
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