The United States Wage and Hour Division of the Department of Labor (DOL) recently published a final rule that increases the minimum salary required to be paid to employees classified as exempt executive, administrative, professional (including the salaried computer professional) and highly compensated employees.
Final Rule Summary
Effective July 1, 2024
- The minimum salary requirementincreasesfrom $684 to $844 per week (equivalent to $43,888 per year for a full-year worker) for the administrative, professional (including the salaried computer professional) and executive exemptions.
- Increases the total annual compensation requirement for the “highly compensated employee” exemption from $107,432 to $132,964, including at least $844 per week paid on a salary or fee basis.
Effective January 1, 2025
- The salary requirement will increase to $1,128 per week (equivalent to $58,656 per year) for the administrative, professional (including the salaried computer professional) and executive exemptions.
- Increases the total annual compensation requirement for the “highly compensated employee” exemption to $151,164 per year, including at least $1,128 per week paid on a salary or fee basis.
Beginning July 1, 2027, and every 3 years thereafter, the amounts above will be determined by DOL using earnings data published by the U.S. Bureau of Labor Statistics.
Employers continue to be permitted to use nondiscretionary bonuses, incentive payments and commissions that are paid at least annually, to satisfy up to 10 percent of the minimum salary requirements.
All About The People by Barbara Flynn @ People First 