As of today, July 1, 2024, all salaried exempt employees must be paid at least $43,888 per year (equivalent to $844 per week).
This is the result of an increase set by the Department of Labor. This increase has been subject to litigation, but no legal change has prevented the increase from going into effect.
You may see in the news that a Texas lawsuit was successful in getting an injunction against this law. While this is true, the impact is extremely limited and does not impact any CEDR members.
A court stopped the salary increase from going into effect for employees of the Texas state government only. This has no impact on private, non-governmental employers.
An additional scheduled increase is scheduled to go into effect on January 1, 2025. This will raise the minimum salary level to $58,656 per year (equivalent to $1,128 per week). CEDR Solution Center Members can read more about this in backstageHR™.
There are additional lawsuits still pending that could impact this salary increase. If anything changes in regard to your pay obligations as a result of this litigation, we will be updating our community with more information. Sign up for our emails to be the first to know!
Keep in mind that this only impacts salaried employees who are exempt from the Fair Labor Standards Act (FLSA). If you’re not sure what that means, we break it down for you in the The CEDR Guide to Employee Classification and Wage Compliance.
If you have exempt employees making below the new salary requirement, you will need to either give those employees a raise or convert them to non-exempt status. Remember that if you increase their pay, you’ll likely need to do so again at the end of the year for the additional January 1st, 2025 law change.
Have questions? Need help figuring out if you have an exempt employee? Not sure how this affects you if you pay all your employees on salary? We’re here to help.