The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, and recordkeeping requirements for employees in the private sector and in federal, state, and local governments.
Upcoming Changes
On April 23, the Department of Labor announced a notable change to the FLSA’s minimum salary threshold for overtime pay. This change may impact some employees whose positions are currently designated as exempt.
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As of today, the minimum annual salary required for exemption from minimum wage and overtime provisions of the FLSA is $35,568.
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Effective July 1, 2024, the threshold will increase to $43,888.
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Effective Jan. 1, 2025, the threshold will increase again, to $58,656.
HRM is actively monitoring these changes and will soon provide further details regarding the implementation timeline and its impact on employees. If you have any questions, please contact your Human Resources Business Partner.