Jeffrey (Jeff) H. Ruzal, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s New York office, was quoted in SHRM, in “New Overtime Rule Raises Salary Level in Two Phases,” by Allen Smith.

Following is an excerpt:

The U.S. Department of Labor’s (DOL’s) two-part approach to implementing its new overtime rule—establishing one raise of the salary-threshold level on July 1 and another on Jan. 1, 2025—gives employers options for adjusting the pay of their exempt employees.

Effective July 1, the Fair Labor Standards Act’s (FLSA’s) annual salary-level threshold for white-collar exemptions to overtime requirements will increase from $35,568 to $43,888. As of Jan. 1, 2025, the annual salary threshold will rise to $58,656. …

Two-Part Approach

“The optics of two smaller gradual increases may appear more reasonable than a single larger increase, but I don’t think this will soften the impact to businesses who are already looking ahead to Jan. 1,” said Jeff Ruzal, an attorney with Epstein Becker Green in New York City.

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