Minimum salary for exempt employees 2025. Just 5 years ago the threshold was $35,100.

Minimum salary for exempt employees 2025. Exempt salary thresholds for NYC, Long Island, and Westchester County: - $1,237. Jan 1, 2025 · As of January 1, 2025, exempt workers in California must be paid a salary that is at least twice the state’s minimum wage, currently $16. Updated 12/2/2024: Proposition 32 did not pass. 70 per hour, representing a 2. 25 Justin R. For every salaried or hourly employee making less than the threshold and working over 40 hours a week, overtime payment is required. Dec 18, 2024 · Explore the minimum salary requirements for exempt employees in 2025 across each state, providing essential insights for HR professionals and businesses. Jul 1, 2024 · Effective January 1, 2025, the DOL is increasing minimum salary threshold for exempt employees. Jan 9, 2025 · Minimum Salary for Exempt Employees: $56,485 per year. This jump reflects the continued wage increase initiative started by The Fair Wages and Healthy Families Act, which voters approved in 2016. 50 per week in New York City, Long Island, and Westchester and increased in the remainder of the state from $1,124. Dec 19, 2024 · In addition to the minimum wage increase, the NYS salary thresholds for the executive and administrative overtime exemptions also increase January 1, 2025 and again in 2026 as noted below. 00 by 2028. Currently, the salary threshold for exempt employees is $48,888 per year, but that will increase to $58,656 on January 1, 2025. In addition to the statewide minimum wage requirements, employers should be aware of Jan 22, 2025 · As of January 1, 2025, the new weekly minimum salary threshold for exempt status increased from $1,200. 50/hour, which means the minimum exempt salary will increase to $68,640 annually. Feb 8, 2025 · Stay up-to-date on the latest Pennsylvania exempt salary threshold for 2025. This ruling does not impact state and local laws that have higher minimum salary requirements. Starting January 1, 2025, California’s statewide minimum wage is $16. Oct 28, 2024 · Assuming employers have already weathered the July 2024 storm caused by the increases in the FLSA minimum salary threshold at that time, the minimum salary threshold for most employees classified as exempt under the administrative, professional, or executive exemptions will substantially increase on January 1, 2025. Barnes & Jeffrey W. Just 5 years ago the threshold was $35,100. 29. What is the lowest salary to be exempt? As of January 1, 2025, to be considered an exempt employee in the U. Aug 7, 2024 · Keep in mind that only the state minimum wage — not local minimum wages — determines the minimum salary requirements for exempt employees. Dec 23, 2024 · Illinois Minimum Wage Law Update Minimum wage set to increase to $15. S. This means the minimum salary requirement for exempt employees under the Fair Labor Standards Act will not increase at this time. The minimum salary for exempt employees in Colorado for 2025 is $56,485 per year. 65 per week. 20 to $1,161. 66 (January 2025), the exempt salary minimum is $69,305. , a worker must be paid a minimum salary of $684 per week, or $35,568 per year. What’s the impact? Employers must review and potentially adjust employee classifications and salaries to comply with the upcoming January 2025 FLSA salary increase for exempt employees. Dec 30, 2024 · The minimum salary required for the exemptions from overtime under federal law was set to increase from $844 per week to $1,128 per week on January 1, 2025. Learn about the new regulations, impact on businesses, and strategies for compliance. . 50 per week ($64,350 per year) on January 1, 2025 Nov 5, 2024 · For example, the minimum wage in California will increase for most workers to $16. This means the minimum salary for most exempt employees remains $684 per week, and for highly compensated employees, it is $107,432 annually. Jan 29, 2025 · Since the minimum wage is currently $16. 4 percent raise. Jun 27, 2024 · As of July 1, 2024, all employees in the United States who earn less than $844 per week ($43,888 per annum) cannot be considered exempt from the requirements of the FLSA’s minimum wage rates and overtime pay requirements. Nov 25, 2024 · Now, the minimum salary for the white collar exemptions under the FLSA revert back to $684 per week ($35,568 per year). Jan 28, 2025 · Here are some key FLSA requirements you should be aware of for both federal exemptions and state exemptions from overtime for 2025. When determining whether an employee is exempt or non-exempt from receiving overtime, employers in Illinois need to review their employee's classification against both the federal Fair Labor Standards Act (FLSA) and Illinois Minimum Wage Law. Employees who meet certain requirements may be exempt from the minimum wage and overtime requirements of Colorado and federal law provided that they are paid by salary of at least a certain amount. The final threshold will increase again on January 1, 2025, to a minimum salary of $1,128 per week ($58,656 per annum). 5 times the employee’s regular rate of pay. 50 per hour. 00 to $1,237. Exempt employees neither receive overtime pay nor qualify for minimum Jul 3, 2025 · Reprieve Extended? DOL to Halt Efforts to Restore 2024 Minimum Salary Rule for Exempt Employees 04. Exempt workers in California, meanwhile, must be paid a salary that is at least twice the state's minimum wage. However, on November 15, 2024, a federal judge in Texas blocked the minimum-salary increase from taking effect nationwide. In April 2024, the Department issued a final rule increasing the standard salary level for exemption, and the total annual compensation requirement for highly compensated employees, as detailed below. Jun 18, 2024 · Update – November 15, 2024: A federal court has blocked the implementation of the new salary threshold rule that was set to go into effect July 1, 2025. Nov 7, 2024 · Specifically, the minimum salary threshold required for executive, administrative, and professional employees to remain exempt from overtime requirements will increase effective January 1, 2025. 60 and will increase to $93,340. Revisions included increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for updating Jan 27, 2025 · The FLSA requires all non-exempt employees to be paid minimum wage and overtime pay, with overtime pay required when an employee works more than 40 hours in a single workweek. Exempt employees, however, are not eligible for overtime pay. Overtime pay must be paid at a rate of 1. 00 per hour New minimum wage rate effective January 1, 2025 Wage and Hour Exemptions Employees may be exempt from wage and hour laws based on criteria associated with their salary, actual duties, and skills. Brecher Nov 18, 2024 · On Friday, November 15, a federal judge in the Eastern District of Texas ordered a nationwide halt to the rule increasing the minimum salary that was set to go into effect on January 1, 2025, so that employers no longer have to raise the salary level of employees who are exempt from overtime to $58,656. Employers should continue following the previous threshold of $684 per week ($35,568 annually) until further Answers about minimum wage rates, geographic differences, small & large employers, and more. Oct 1, 2024 · Updated 11-18-2024 The Fifth Circuit’s support of the DOL’s regulatory authority could have implications for the scheduled 2025 salary threshold increase. Aug 5, 2025 · Employer Compliance and Employee Impact Given the vacatur of the DOL’s April 2024 rule, employers are currently operating under the previous FLSA salary thresholds. In April 2024, the Department issued a final rule increasing the standard salary level for exemption, and the total annual compensation requirement for highly compensated employees, as detailed below. Jun 5, 2024 · The rule will also increase the total annual compensation requirement for the highly compensated employee exemption from $107,432 per year to $132,964 per year on July 1, 2024, and then increase again to $151,164 per year on January 1, 2025. , to update and revise the regulations issued under section 13 (a) (1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional employees. The current minimum wage salary amount as set forth by the FLSA for exempt employees is $844 per week (equivalent to a $43,888 annual salary). 35 to $14. Further, beginning July 1, 2027, the minimum salary level for exempt status will be updated every three Nov 18, 2024 · Minimum Wage Increase Effective January 1, 2025, Arizona’s minimum wage will increase by 35 cents – from $14. Ongoing legal challenges could still succeed, and Nov 18, 2024 · Among these rules are salary requirements for employees classified as “exempt” from overtime. jmdk vydpoj clfnk ilrdy euajld eqxz qtlbk erwu dgqpep ipokwc