DOL raises overtime-exempt minimal wage necessities – Cyber Tech

The U.S. Division of Labor (DOL) printed new laws for the Honest Labor Requirements Act (FLSA) that enhance the minimal salaries required for white-collar employees who’re exempt from extra time. The brand new laws elevate the exempt wage threshold as of July 1, 2024, after which once more on January 1, 2025, as follows:

• Starting July 1, 2024, the minimal weekly wage for exempt government, administrative, {and professional} workers will rise to $844 per week (up from $684 per week). That works out to $43,888 yearly (up from $35,568).
• On January 1, 2025, the minimal wage for exempt government, administrative, {and professional} workers will increase to $1,128 per week. That’s equal to an annual wage of $58,656.
• As of July 1, 2024, the annual wage threshold for workers who don’t meet all the necessities for the manager, administrative, or skilled exemptions however are labeled as exempt from extra time as “extremely compensated workers” will increase to $132,964 (up from $107,432). The annual wage threshold will enhance once more on January 1, 2025, rising to $151,164. To qualify for the extremely compensated worker exemption, a white-collar employee should usually and repeatedly carry out a minimum of one of many exempt duties or tasks of an exempt government, administrative, or skilled worker, along with assembly the annual wage requirement. (Observe: the extremely compensated worker exemption isn’t permitted in California, Oregon, or Washington.)
• Will increase to those exempt wage necessities can be made each three years after the primary enhance, to maintain tempo with future earnings information. The following replace is scheduled for July 1, 2027.

For extra data, see this DOL webpage masking the brand new wage necessities.

Ideas: Time beyond regulation exemptions that require cost on a wage foundation should meet each the wage threshold required beneath federal regulation and any wage threshold required by state regulation (whichever wage is larger). In California and Washington, the present exempt wage thresholds are already larger than the elevated federal wage ranges for 2024 and 2025 (California is presently $1,280 per week, $66,560 per yr; Washington is presently $1,302.40 per week, $67,724.80 per yr). In these two states, exempt salaries should proceed to fulfill the state wage threshold. Idaho, Montana, and Oregon employers ought to comply with the brand new federal wage thresholds above. (Though Oregon’s minimal wage is growing on July 1, 2024, as we beforehand reported, Oregon’s minimal wage threshold for exempt workers will nonetheless be decrease than the brand new federal minimal wage threshold for exempt workers.)

It is best to evaluation your whole exempt employees’ salaries to find out which positions could also be impacted by these will increase to the minimal wage necessities. For exempt workers who aren’t being paid sufficient to fulfill the related wage threshold, you’ll need to determine whether or not to extend their wage by July 1, 2024, to take care of their exempt standing, or change their standing to nonexempt, making them eligible for extra time. Remember that to be able to qualify for the manager, administrative, or skilled exemptions, workers should meet sure job duties checks along with being paid on a wage foundation. We can be updating our Authorized Guides, When Is an Worker Exempt Underneath Federal Legislation?, Wage Foundation Check for Time beyond regulation Exemptions, and State Legal guidelines on the White Collar Exemptions from Time beyond regulation, with the brand new minimal wage necessities.