Effective July 1, 2024: $43,888 minimum salary
Effective January 1, 2025: $58,656 minimum salary
On April 23, 2024 the Department of Labor issued the final rule changing the classification of some administrative and professional employees from salary to hourly. After July 1, 2024 to qualify for a salaried position you must pay at least $43,888. On January 1, 2025, the minimum salary is $58,656. Employers who pay less than the minimum salary threshold are required to pay overtime for hours worked over 40 hours in a 7-day work week at 1.5 times the regular rate of pay.
Exempt employees are salaried and exempt from overtime rules.
Non-exempt employees are paid hourly and are eligible for overtime after working more than 40 hours in 7-day work week.
We recommend evaluating the Department of Labor website and perform the salary basis test, salary level test and duties test to determine if your executive, administrative and professional employees can continue to be salaried or may need to be switched to hourly rates.
You may consult with our staff for assistance in calculation of hourly rates and payroll related questions. Please call 715-443-3450 to schedule an appointment.
Links for Resources:
Department of Labor Fact Sheets: https://www.dol.gov/agencies/whd/fact-sheets
Section 17 Fact Sheets references the new exemptions and tests