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Client Alert
New Overtime Rule 2024
Puerto Rico
By: Angel Berberena, Esq.
April 24, 2024
On April 23, 2024, the U.S. Department of Labor (DOL) published its anticipated Final Rule raising the Fair Labor Standards Act’s minimum annual salary threshold for overtime. The current threshold for salaried employees (executives, administrative or professionals) is $684 per week (equivalent to $35,568 per year for a full-time employee).
The new final rule will update the salary threshold as follows:
- Effective on July 1, 2024, the salary threshold will be raised to $844 per week (equivalent to $43,888 per year for a full-time employee).
- Effective on January 1, 2025, the salary threshold will be raised to $1,128 per week (equivalent to $58,656 per year).
- Salary updates every three years following the guidelines laid out in the Final Rule. This is expected to occur on July 1, 2027, but according to the DOL, updates may be temporarily delayed if the department engages in changes to methodology or update mechanism.
Regarding Puerto Rico, the Final Rule specifically provides that the DOL is not finalizing in this rule its proposal to apply the standard salary level to the U.S. territories subject to the Federal minimum wage. The DOL will address these aspects of its proposal in a future final rule. For now, and for most employers in Puerto Rico, the salary threshold will remain at $455 (equivalent to $23,660 for a full-time employee) continuing the 2004 salary level.
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