Federal Salary Requirement for Exempt Positions

On Tuesday, April 23, the U.S. DOL announced a rule to significantly increase areas of compensation:

(1) The salary level needed to qualify for overtime exemptions (per the FLSA) for Executive, Administrative and Professional employees is increased to $844 per week ($43,888 annually);

(2) The total compensation needed to qualify for exemption per the FLSA’s test for “highly compensated employees” is increased to $132,964 per year.
These figures will be effective on July 1, 2024 but will increase again, effective January 1, 2025. In 2025, the rule sets forth that the salary basis threshold will increase to $1,128 per week ($58,656 annualized), and the threshold for exemption for highly compensated employees to $151,164 per year.

These salary levels will be subject to automatic increases every three years. Employers are expected to comply with these federal standards in addition to any applicable state requirements.

Keep in mind there may be State requirements to consider as well.