Increasing Minimum Salary Threshold



Change is a coming for the Minimum Salary Threshold for Overtime Eligibility.

The Department of Labor announced that starting July 1, 2024, employers will have a higher salary threshold to consider an employee exempt from the Fair Labor Standards Act (FLSA) over time rule.  

The current salary threshold is $684 per week or $35,568 annually.  On July 1st this will increase to $844 per week or $43,888 annually, and to $1,128 per week or $58,656 annually on January 1, 2025.

Also going into effect on July 1, 2024, is the minimum salary threshold to qualify for the highly compensated employee exemption which will increase to$132,964 per year, and then increase again to $151,164 on January 1, 2025.

So what should you do?  July 1st will be here before you know it.  Take a look at a salary report of your existing employees, and determine if you will have any employees that will be effected by the change both on July 1st or on January 1st.  

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