Employers need to know about an important law change relating to minimum salary levels for employees.

On September 23, 2023, the U.S. Department of Labor (DOL) released the final rules increasing the minimum salary level for the Fair Labor Standards Act (FLSA) “White Collar” exemptions from $684 to $844 per week beginning in July 2024.

Effective July 1, 2024, the new law raises the salary threshold to $844 per week, or $43,888 per year (increased from $684 per week or $35,568 per year). This translates to the following amounts per pay period:

Bi-weekly – $1,688 per pay period

Semi-monthly – $1,828.67 per pay period

Monthly – $3,657.34 per pay period

Starting January 1, 2025, the new law will raise the salary threshold again, increasing from $844 per week to $1,128 per week or $56,656 per year. We will send more correspondence as a reminder closer to the January threshold increase.

For any employees not being paid at least the minimum threshold, employers must increase the salary or track and pay overtime to the employee.  Employers must comply with these new rules beginning July 1, 2024.

We suggest you consult an attorney with questions about how this law change affects you as an employer. Here is more information on the Department of Labor’s website.

If you determine you need to modify employee salaries or track overtime for additional employees, please contact us and we can help you make those changes.