Are You Compliant with the FLSA Changes?

Overview of Proposed Changes to Overtime Exempt Salary Levels        

On April 23, 2024, the United States Department of Labor published its final rule amending the overtime regulations under the Fair Labor Standards Act (“FLSA”). Specifically, the final rule increases the salary thresholds required for employees to be classified as exempt from overtime requirements.

New Thresholds and Effective Dates:

The new salary threshold increases will be implemented in two (2) phases.

The first salary threshold increase must take effect on July 1, 2024. The salary thresholds will be as follows:

  1. Executive, Administrative, and Professional Exemptions: $844 per week ($43,888 annually).
  2. Highly Compensated Employee Exemption: $132,964 total annual compensation.

The second salary threshold increase must take effect on January 1, 2025. The salary thresholds will be as follows:

  1. Executive, Administrative, and Professional Exemptions: $1,128 per week ($58, 656 annually).
  2. Highly Compensated Employee Exemption: $151,164 total annual compensation.

Impact on Businesses:

Employees earning below the new salary thresholds may be eligible for overtime pay, even if they meet the duties test for exempt status. It is crucial for employers to review and potentially adjust the classification of their employees to ensure compliance with the updated regulations.   Employers should ensure that their payroll and HR systems are updated to reflect the new salary thresholds by the effective dates to avoid any compliance issues.

Non-compliance with the updated overtime regulations can result in costly penalties and legal repercussions for businesses.

The HR Partners Holiday Video - 2023

We appreciate your business, and we wish you nothing but the best for Christmas and the New Year holidays.

2024 will be an epic year and we can’t wait to work with you to continue the magic.

To view the video, click the image below or click here, and once you see the video on Vimeo, please click the play button. Enjoy!

 Christmas Video 2023

 

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Schendel Lawn and Landscape

Brent Boles
Co-Owner
Schendel Lawn and Landscape

"Schendel works with HR Partners in several different capacities over a five state area. They answer our questions about employment law, help train our management staff to be better leaders, and ensure our employee policies and procedures are legally sound and in the best interests of both Schendel and our co-workers.

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