# DOL Updates FLSA Exemption Criteria for IT Roles

The United States Department of Labor's Wage and Hour Division issued updated guidance in August 2024 clarifying exemption criteria under the Fair Labor Standards Act (FLSA) for computer-related occupations. This update specifies that employees such as computer systems analysts, programmers, and software engineers may be exempt from minimum wage and overtime pay if they meet defined salary or hourly pay thresholds and primary duty requirements. The guidance sets a minimum hourly compensation rate of $27.63 for hourly-paid exempt employees or a salary meeting the standard salary level per 29 CFR 541.600. This clarification is essential for government contractors and agencies employing IT professionals to ensure compliance with labor laws and avoid wage and hour violations.

- **Why this matters:** Procurement professionals must ensure contract labor classifications and compensation structures align with updated FLSA exemption criteria to mitigate legal and financial risks.
- Agencies and contractors employing computer-related occupations should review pay practices to confirm eligibility for exemption status under the updated thresholds.
- This update impacts contract staffing, budgeting, and compliance monitoring for IT services across federal government procurements.
- Organizations can leverage the Wage and Hour Division helpline at 1-866-487-9243 for further clarification on exemption status and compliance requirements.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Regulatory Compliance
**Published:** September 28, 2026

### Government Entities
- United States Department of Labor (DOL)
- Wage and Hour Division (WHD)

### Key Quotes
> The employee must be compensated either on a salary or fee basis at a rate not less than the standard salary level required by 29 CFR 541.600 or, if compensated on an hourly basis, at a rate not less than $27.63 an hour.
> — Original poster

### Sources
- [Hourly exempt - red flag or normal in this space?](https://www.reddit.com/r/GovernmentContracting/comments/1wspqyg/hourly_exempt_red_flag_or_normal_in_this_space) - reddit-governmentcontracting