Employers Must Implement First FLSA Exempt Salary Increases on July 1, 2024

Barring a last-minute, successful legal challenge, the Department of Labor’s final rule mandating higher salary levels for exempt employees will take effect Monday, July 1, 2024. On that date, employees whose job duties meet the test for the FLSA’s “white collar exemptions” must be paid a fixed salary of at least $844 per week, or $43,888 per year, in order to retain their exempt status (an increase from the current salary threshold of $684 per week, or $35,568 per year). As detailed in Lake Effect’s April 24, 2024 and June 2, 2024 blog posts, this is the first in a two-step mandatory increase to minimum salary levels for exempt employees under the FLSA. The second step will take effect on January 1, 2025, when employees will have to be paid a minimum of $1,128 per week, or $58,656 per year to remain exempt from the FLSA’s overtime requirements.

Lake Effect can answer remaining questions about exempt status requirements and implementation of the new FLSA minimum salary requirements.

Lake Effect provides guidance on all employment laws, regulations, and agency guidelines. We continue to monitor important legal and HR developments, as well as other information that could impact the workplace. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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