Interesting info on exempt status. I predict we are going to see some salary adjustments or status changes soon.
At issue is the department’s April 23 Final Rule, which increased the salary threshold for employees to qualify as exempt from overtime under the Fair Labor Standards Act (FLSA). In order to qualify for most “white-collar” exemptions under the FLSA, employees must satisfy a two part test: (1) the employee’s job duties must qualify for a specific exemption, and (2) the employee’s salary must meet a minimum threshold.
If either of the two parts of the test are not met, the employee is not exempt and must be paid overtime for hours over 40 per week. On April 23, 2024, the DOL issued a Final Rule which raises the salary threshold for so-called “white collar” exempt workers from $684/week to $844/week as of July 1, 2024, and again to $1,128/week on January 1, 2025. The rule also changed the salary threshold for “highly compensated” exempt employees from $107,432/year to $132,964/year on July 1, 2025, and to $151,164/year on January 1, 2025.
https://www.foley.com/insights/publications/2024/06/dol-rule-increasing-exempt-employee-salary-threshold-challenges/