New rule went into effect July 1, and more changes are coming at the first of next year.
There are new overtime rules in place for some salaried employees. And more rules are coming on the first of next year.
Starting Monday, July 1, salaried employees who earn less than $844 a week or $43,888 a year are now eligible for overtime. The new rule updates the previous threshold of $35,568. On Jan. 1, 2025, the threshold will increase again to $1,128 a week or $58,656 a year.
Additionally, the annual salary level required to claim the “highly compensated employee” exemption is now $132,964 and will jump to $151,164 on Jan. 1.
Starting July 1, 2027, the exempt employee salary thresholds will be updated every three years.
If you have employees affected by these new rules, there are a couple of steps to take. First, make sure your overtime-exempt employees make at or above the new minimums or reclassify those staff members.
Also, if you don’t use a time-tracking system or if you track time manually, consider an automated time tracker so you can easily see which employees worked overtime.
Let us know if you have questions about the new exempt salary overtime thresholds or anything else related to paying your employees