The U.S. Department of Labor recently finalized a ruling regarding salary requirements for exempt employees. This ruling has changed the minimum salary amount beginning on July 1, 2024, to $844 a week ($43,888 annually).
Another increase will occur on January 1, 2025, to $1,128 per week ($58,656 annually). These are the required salary amounts for the employees to be exempt from the Fair Labor Standards Act’s minimum wage and overtime requirements. If your employees are paid less than the salaries stated above, they are non-exempt and must be paid overtime for their overtime hours.
This new law will help make sure salaried employees are not taken advantage of. It will also ensure that salary levels are fair for employees who are not benefitting from over time.
It is important to know who qualifies for an exempt salary and who does not. Anyone in a labor position must be paid for any overtime work, regardless of how high a salary may be.
To be considered a salary-exempt employee, they must be an executive employee, administrative employee, or professional employee. They cannot just have the title of these positions either.
The employee has to provide the services that fall under these specific employment types. For example, you cannot have an employee with the job description of admin who is welding for clients. They would fall under the labor category.
For more information on how this could affect your business, reach out to one of our staff members today.