By Ronnie Miles, NGCOA, Senior Director of Advocacy
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On April 24, 2024, the Department of Labor (DOL) finalized its regulation titled "Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees," which addresses exemptions from the Fair Labor Standard Act’s (FLSA’s) minimum wage and overtime regulations. This encompasses both standard level employees and highly compensated employees (HCE).
The initial update to the standard salary level and the HCE total annual compensation threshold is scheduled for July 1, 2024, using methodologies from the 2019 rule, resulting in a $844 per week ($43,888 annually) standard salary level and a $132,964 HCE total annual compensation threshold.
A second increase is slated for January 1, 2025, with the new levels set at $1,128 per week ($58,656 annually) and $151,164 for HCE.
Key aspects of the new rule include preserving existing job duties requirements without alterations, and maintaining the 10% limit on commissions and non-discretionary bonuses that can be included in the threshold.
Golf course owners and operators are urged to swiftly assess the classification status of their employees, especially with the first changes scheduled to take effect as early as July 1st of this year. This will help you navigate the evolving regulatory landscape and ensure compliance with the updated requirements.
Please don't hesitate to email me, Ronnie Miles, at rmiles@ngcoa.org with any questions and/or comments.
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