Salary Thresholds as of July 1, 2024: What You Need to Know

As of July 1, 2024, the U.S. Department of Labor has introduced new salary thresholds that impact overtime pay and exemptions for certain employees ¹. Here are the key points to understand:

• Standard Salary Threshold: $43,888 per year, or $844 per week ¹

• Highly Compensated Employees: $132,964 per year, or $2,564 per week ¹

• Overtime Pay: Non-exempt employees are entitled to overtime pay for hours worked beyond 40 hours per week ¹

• Exemptions: Certain employees, such as executives, administrators, professionals, outside sales employees, and computer professionals, may be exempt from overtime pay if they meet specific duties and salary tests ²

• Future Updates: Salary thresholds will be updated every three years to reflect changes in earnings data ³

Impact on Employers and Employees

The new salary thresholds aim to expand overtime protections for lower-paid salaried workers and ensure they receive fair compensation for their work ³. Employers must review their employees' salaries and duties to determine if they meet the new thresholds and make necessary adjustments to comply with the regulations ⁴. Employees who were previously exempt may now be eligible for overtime pay, and employers may need to reclassify certain positions or increase salaries to maintain exemptions ⁵.

Key Takeaways

• The new salary thresholds apply to most U.S. workers and are aimed at expanding overtime protections and ensuring fair compensation.

• Employers must review their employees' salaries and duties to determine if they meet the new thresholds and make necessary adjustments to comply with the regulations.

• Employees who were previously exempt may now be eligible for overtime pay, and employers may need to reclassify certain positions or increase salaries to maintain exemptions.

• Salary thresholds will be updated every three years to reflect changes in earnings data.