Employers should review their salary levels for exempt employees in preparation for a new rule effective July 1, 2024.
The Fair Labor Standards Act ("FLSA") has certain exemptions available from minimum wage and overtime pay. For the white collar exemptions (executive, administrative, and professional employees), the annual salary threshold is increasing from $35,568 ($684/week) to $43,888 ($844/week) on July 1 and again on January 1, 2025 to $58,656 ($1128/week). The duties test and salary basis test to qualify for the executive, administrative, or professional exemption are not changing and still need to be met in order to qualify for these exemptions.
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