On April 23rd, the Department of Labor released the final minimum annual salary requirements to classify employees as exempt from overtime.

The salary amount will increase effective July 1, 2024, again January 1, 2025, and the rule puts into place auto increases every three years starting January 1, 2027.

  • Current minimum annual salary: $35,568 ($17.10 per hour)
  • Minimum annual salary effective July 1, 2024: $43,888 ($21.10 per hour)
  • Minimum annual salary effective January 1, 2025: $58,656 ($28.20 per hour)

Employers with employees who are currently classified as exempt from overtime should take the following steps.

  • Review affected positions under the white-collar exemption duties test to verify it meets criteria to be exempt. (DOL Exemption Test Resource)
  • Determine amount of hours worked over 40 in a work week.
  • Evaluate if those positions should transition to hourly or increase the annual salary.
  • Communicate early with employees impacted so they understand how this may impact their earnings.

For more information on this topic visit the Department of Labor’s site or contact your KT advisor.