The crux of the changes lies in the classification of employees as exempt or non-exempt from overtime pay. As of July 1, 2024, the minimum salary threshold for exempt employees increased from $684 per week ($35,568 annually) to $844 per week ($43,888 annually). This shift required many practices to reassess their staffing structures and compensation strategies.
But the changes don’t stop there. Come January 1, 2025, we’re looking at another significant increase. The salary threshold will jump to $1,128 per week ($58,656 annually). For those relying on the highly compensated employee exemption, the threshold rose from $107,432 to $132,964 on July 1, 2024, and will further increase to $151,164 on January 1, 2025.
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