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SHRM states: “The U.S. Department of Labor has increased the Fair Labor Standards Act’s (FLSA’s) annual salary-level threshold from $35,568 to $58,656 as of Jan. 1, 2025, for white-collar exemptions to overtime requirements. Effective July 1, 2024, the salary threshold will increase to $43,888. Employees making less than the salary-level threshold, such as hourly workers, can be eligible for overtime if they work enough hours.” *

What does this mean for you? Employers need to decide if they are going to raise the salary of the exempt employees. If employers are not able or unwilling to give their employees raises withing the guidelines; then the companies need to be prepared to pay overtime to those employees.  (Remember: Overtime is any time over 40 hours in a workweek paid at 1 ½ times their regular hourly rate of pay.)  

This is a big movement for companies and plans for the future of staffing. Do you increase the salary of the staff members, or do you allow your staff overtime? Do the staff members get more job duties if their salary increases? If the staff get more duties, are they taking duties away from other staff?  This will not suit all companies by any means, so we encourage you to review your employee salary roster.  

 *Employees Making Less than $58,656 May Now Be Eligible for Overtime 

– Allen Smith J.D April 23, 2024

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