Salary Increase for Exempt Employees – Effective May 22, 2024

The US Department of Labor (DOL) has amended the Restoring and Extending Overtime Protections rule. The final amendment increases the salary threshold required under the Fair Labor Standards Act. This is for all bona fide executive, administrative, and professional exemptions (white-collar exemptions). The changes are as follows:

  • July 1, 2024: Salary threshold increases to $844 per week ($43,888 per year).
  • January 1, 2025: Salary threshold increases to $1,128 per week ($58,656 per year).
  • On July 1, 2027, and every three years thereafter, the salary threshold for the white-collar exemptions will increase again.

The salary increases do not change the exemption duties test that an employee must pass to be classified as exempt. The duties test rules can be found here –

What do you need to do now?

Review all duties and salaries for exempt employees to ensure everyone is classified correctly. If an employee that passes the duties test is below the salary requirement effective July 1, 2024, or January 1, 2025, you will need to increase salaries or re-classify the workers to non-exempt.

Please reach out to our office if you have any questions.

Leave a Comment

Your email address will not be published. Required fields are marked *

Notify me of followup comments via e-mail.