DEADLINES – July 1, 2024 and January 1, 2025
On April 23, 2024, the U.S. Department of Labor released a final rule that raises the minimum salary overtime exemptions under the federal Fair Labor Standards Act (FLSA). Employers must therefore either raise the salaries paid to such employees to maintain the exemption or reclassify their positions to non-exempt, paying them an hourly wage and overtime. The first deadline to raise salaries is July 1, 2024.
The FLSA generally requires covered employers to pay employees a minimum wage and, for employees who work more than 40 hours in a week, overtime pay of at least 1.5 times an employee’s regular rate of pay. Employees who are “exempt” from overtime, must meet several criteria, based on an exemption to overtime set out in the FLSA.
The current minimum salaries for executive, administrative, and professional employees is currently $35,568 per year. As of July 1, 2024, the minimum salary for employees to be exempt from overtime under the FLSA changes.
New Minimum Salaries and Effective Dates:
- July 1, 2024, the minimum salary for exempt employees who fall into the executive, administrative, and professional exemptions will be $43,888 per year.
- January 1, 2025, the minimum salary for exempt employees who are covered by the executive, administrative, and professional exemptions will be $58,656 per year.
- July 1, 2027, and every three years thereafter, the salary thresholds will automatically update and increase.
Our Employment Law team at KJ Partners is here to help you navigate these issues, plan, and strategize on the best solutions for your business. We believe in creative strategies that best fit your business.
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