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  • Samuel Hernandez

The Department of Labor Drastically Increased the Minimum Salary Threshold for Overtime Exempt Employees

Updated: 2 days ago

The federal Fair Labor Standards Act (FLSA) requires all employees to be paid an hourly wage. Employees that work more than 40 hours in a workweek are required to be paid overtime at the rate of one and a half times their hourly wage. Certain employees are exempt from being paid overtime when they are paid a minimum weekly salary. Beginning July 1, 2024, the minimum weekly salary for exempt employees will increase from $684 ($35,568 per year) to $844 ($43,888 per year). Six months later, on January 1, 2025, the minimum weekly salary will increase to $1,128 ($58,656 per year).   


Not every employee qualifies to be paid on a weekly salary basis. As a general rule, only employees that fall within the definition of a bona fide executive, administrative, or professional are permitted to be paid on a salary basis. Employees performing manual, non-management labor are not permitted to be paid on a weekly salary basis. Employers that fail to properly classify workers as hourly or exempt, and pay them accordingly, may be liable for back owed wages, overtime pay, and penalty wages.  


The increased minimum salary threshold is expected to impact four million workers exempt under the current regulation. If you are an employee misclassified as an exempt employee and know you are owed overtime pay, contact our office to learn more about your rights.

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