Highly Compensated Employee 2024 Exemption Form. (a) an employee shall be exempt under section 13(a)(1) of the act if the employee receives total annual compensation of not less than the amount set forth in. The final rule is introducing a mechanism to regularly update the salary and compensation thresholds, including an initial update to reflect earnings growth, which on july 1, 2024,.

A highly compensated employee (hce) owns at least 5% of the company and earns more than the federal predetermined compensation limit. The final rule also increases the total annual compensation threshold required for an employee to qualify for the flsa’s “highly compensated employee”.