The U.S. Department of Labor (DOL) has announced an update to the minimum salary threshold for exemptions to the Fair Labor Standards Act (FLSA) overtime pay requirements. The FLSA is a federal law that establishes minimum wage, overtime pay, and recordkeeping standards for employees in the United States.
The DOL has released a two-part implementation plan for their new minimum salary thresholds for exempt employees. On July 1, 2024, the DOL is raising the minimum salary threshold from its current level of $35,568 annually to the new level of $43,888. On January 1, 2025, the minimum salary threshold will move to $58,656. These new salary threshold minimums are required at both the job level minimum salary and the employees’ minimum earnings.
Employees impacted by the FLSA change will be moved from a salary and monthly pay frequency to an hourly rate and biweekly pay frequency. The change to biweekly would also mean you will be eligible for overtime pay for hours worked over 40 in a defined workweek.