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Providing People Solutions |
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Providing People Solutions |
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:
The second salary threshold increase must take effect on January 1, 2025. The salary thresholds will be as follows:
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.
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“As Premier One has grown from a small business to a mid-sized business, the company has gone through a number of necessary changes to manage that growth. HR Partners assists us in managing that growth by improving multiple aspects of our business that fall outside of our primary area of expertise. Kristina provided staff training in customer service and time management. Margaret assisted us in developing a comprehensive employee handbook and job descriptions that follow HR best practices. John has developed, reviewed, and advised us on a number of contracts and other legal documents.
Premier One provides comprehensive IT consulting, so we understand that business model well. HR Partners is truly the best in the business for those who are looking for HR and Legal consulting all under one roof. Thank you HR Partners!”
