The Department of Labor has revised the Fair Labor Standards Act’s overtime exemptions, impacting executive, administrative, and professional employees.

Starting July 1, 2024, the salary threshold for these exempt employees will increase to $844 weekly ($43,888 annually) and will further rise to $1,128 weekly ($58,656 annually) by January 1, 2025. Additionally, up to 10% of these salary thresholds can include nondiscretionary bonuses and incentives. This adjustment is crucial as it expands overtime eligibility, potentially affecting many businesses by increasing payroll costs and necessitating salary structure reassessments to ensure compliance and fair worker compensation.

We have attached a document with additional information regarding this change. Our firm collaborates with ADP to fulfill all payroll and human capital requirements. Should you need assistance navigating these changes, don’t hesitate to contact your tax professional. We can facilitate an introduction with our dedicated account manager who directly assists our clients.

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