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The salary threshold required to exempt a salaried executive, administrative, or professional employee from federal overtime was increased from $35,568 to $43,888 effective July 1, 2024.  The salary threshold will further increase to $58,656 on Jan. 1, 2025.  

Starting July 1, 2027, salary thresholds will be updated every three years, by the Department of Labor applying the same standards it used in establishing the current increases to the then-current wage data to determine new salary levels.

Employers need to remember that some states already have a higher minimum salary threshold than the federal minimum.  Employers must pay the higher of the state or federal minimum salary requirement to comply with state law. Be sure to check with your state laws as individual state law minimums are frequently changing.

Brody and Associates regularly advises management on complying with the latest local, state, and federal wage and hour laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.