Washington, D.C. — The Department of Labor (DOL) has confirmed that the minimum salary threshold for overtime exemption will rise to $132,964 for highly compensated employees starting July 1, with a further increase to $151,164 scheduled for January 1, 2025.
This regulatory update targets salaried employees who have traditionally been exempt from overtime pay under the Fair Labor Standards Act (FLSA). While the most visible impact will be felt by administrative and professional staff, the ripple effects extend into the trucking sector, where companies rely on salaried personnel for dispatch, logistics, and fleet management. The rule follows a methodology that adjusts wage thresholds based on the 20th percentile of weekly earnings for full-time salaried workers in the lowest-wage Census region, a process that has now been updated to use the 35th percentile for the January 2025 adjustment.
Jessica Looman, administrator of the DOL’s Wage and Hour Division, stated during a recent press call that the initial July 2024 increase is projected to affect approximately one million workers. The subsequent January 2025 adjustment is estimated to impact around three million employees. Patrick Oakford, deputy assistant secretary for policy at DOL, clarified that the specific threshold for highly compensated employees will jump to $132,964 on July 1. The department reviewed over 33,000 public comments on the proposed rule, including submissions from the Society for Human Resource Management (SHRM).
What This Means for Drivers
For the average CDL-A driver or owner-operator working on a per-mile basis, this rule does not directly alter pay structures, as most truckers are already nonexempt hourly workers entitled to overtime after 40 hours. However, the financial strain on small to mid-sized carriers could influence how trucking companies hiring new staff in back-office roles. Fleet managers and dispatchers who currently earn between $35,568 and $132,964 will either need to see a significant pay raise or be converted to hourly status with overtime eligibility. This shift may lead some carriers to restructure their operations, potentially affecting the stability of teams that OTR truck driver candidates depend on for consistent routing and support. Owner-operators who employ their own dispatchers or mechanics will also need to ensure their payroll practices comply with these new federal standards to avoid liability.
Industry Reaction
The trucking industry has largely aligned with broader business concerns regarding compliance timelines. SHRM argued that a 60-day window between publication and the effective date is insufficient for employers to assess impact and adjust payroll systems. Julie Su, acting secretary of labor, defended the rule as a restoration of the promise that workers should be compensated for extra hours. Legal challenges are anticipated in federal courts, with a bill introduced by a Republican representative from Missouri seeking to block the final rule, though it has not yet undergone committee review. Employer-side attorneys are advising businesses to evaluate which positions will be affected and decide whether to convert impacted employees to nonexempt status or increase salaries to surpass the new thresholds.
Key Points
- The minimum salary for highly compensated employees will rise to $132,964 on July 1, 2024.
- A second increase to $151,164 is scheduled for January 1, 2025.
- The initial rule change is expected to impact approximately one million workers.
- SHRM has urged for a delay due to insufficient compliance time.
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