The U.S. Department of Labor has amended the threshold for exemption from overtime for salaried employees. Effective July 1, 2024, an employee who performs primarily executive, administrative, or professional duties and is weekly paid a predetermined and fixed amount, nevertheless will be eligible for overtime if they earn less than $43,888 annually. The threshold increases to $58,656 annually beginning on January 1, 2025. Thereafter the threshold will increase automatically every three years beginning July 1, 2027. You should review your employees’ salaried compensation. If these employees fall below the new thresholds, you will either need to raise their salaries to remain exempt from overtime compensation or you will need to reclassify them as non-exempt employees.
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