SPECIAL ALERT! New Rule from USDOL

Does your business or nonprofit entity have any employee that you consider to be exempt from overtime pay as an executive, administrative, professional or Highly Compensated Employee (HCE)?

As of July 1, 2024, you have to pay that employee at least $844 per week to remain exempt.

And, as of January 1, 2025, you have to pay that employee at least $1128 per week to remain exempt.

If you have an HCE, as of July 1, 2024, to have to pay that HCE $132,964 per year to remain exempt.

And, as of January 1, 2025, you have to pay that HCE $151,164 to remain exempt.

BOTTOM LINE:

The minimum “price” you have to pay to keep a salaried employee exempt from overtime is $43,888 per year starting July 1, 2024, and raise the pay to $58,656 per year as of January 1, 2025.

Are you ready?

Have you conducted an audit of all your exempt positions?

Have you factored the increased pay into your budget?

Do not be fooled by the anticipated litigation about this new rule.  It is unlikely that anything will be resolved by July 1.  The time to act is now.

See: www.dol.gov/agencies/whd/overtime/rulemaking for more information.