How New DOL Rules Apply to Independent Schools

Aug 5, 2024, 9:52 AM

(from Venable LLP) In a 2024 Final Rule, the Department of Labor (DOL) announced that it would be increasing in two phases the salary threshold for employees to be exempt from overtime. Specifically:

As of July 1, 2024, the threshold increased to $844 per week/$43,888 annualized, up from the current threshold of $684 per week/$35,568 annualized; and
As of January 1, 2025, the threshold will increase again to $1,128 per week/$58,656 annualized.

Because an independent school’s faculty members are not subject to the salary basis, the 2024 Final Rule will not have an impact on those individuals. However, the 2024 Final Rule does increase the salary basis for employees working in other capacities for independent schools, such as the head of school, chief financial officer, or division heads and schools should consider executive, administrative and professional exemption tests.