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DOL’s Salary Increase Rule Explained

Update: On 5/22/24, business groups filed a lawsuit against the Department of Labor seeking to halt this increase from taking effect. The lawsuit is Plano Chamber of Commerce et al v US Department of Labor, 4:24-cv-00468-SDJ, ED Texas. This rule was halted for one employer (the State of Texas as a government employer). These legal challenges continue, with more rulings expected before the 1/1/25 effective date of the next increase. Watch this video for more:    • US Exempt Salary Increase - What Happ...   "What's going on with salaries getting raised?" In this week's video, I break down the US Department of Labor's (DOL) rule to increase salaries for many exempt workers in two phases: July 1 and January 1. I break down who it applies to (and doesn't), and what to expect next, including hints from the Supreme Court on how they might rule on inevitable legal challenges. Timestamps 0:30 - Why overtime is due at all 0:48 - What "exempt" from overtime means 1:07 - Why the Department of Labor puts out these rules 1:25 - What jobs are exempt 1:40 - "Professional" exemption 2:14 - "Administrative" exemption 2:26 - "Outside sales" exemption 3:11 - "Executive" exemption 3:23 - Salary level tests 3:43 - Current minimum salary in the US 3:53 - Why teachers, doctors, lawyers and outside sales are different 4:56 - What the new DOL rule is all about 5:26 - What happened in court in 2016 that could happen again in 2024 6:04 - What would change in the new rule 6:25 - The "Highly Compensated" Exception 7:43 - A Supreme Court dissent that could come into play 7:54 - Why your pay might not go up 8:32 - When I think we'll know if it takes effect (late June) 8:55 - The legal arguments (and that dissent) If you like this video, subscribe and stay tuned. I'm Ashley Herd, an employment lawyer and HR leader who's now a LinkedIn Learning instructor and run Manager Method, where I work with organizations to train managers on people leadership, and key topics they need to know to stay on the right side of the law. Visit managermethod.com for more - including speaking and our Manager 101 training packages.