Exempt Salaries Rise: What It Means for Your Business

Posted By: Guardian HR Staff Posted On: July 2, 2024 Share:
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Overview of the New Exempt Salary Requirements

Impact on Your Employees

Compliance Options

To ensure compliance, you have two primary options:

  1. Increase Salaries: Adjust your exempt employees' salaries to meet the new threshold of $844 per week.
  2. Reclassify Employees: Review and possibly adjust job descriptions to reclassify employees as non-exempt if the new salary requirement cannot be met.

Assistance from Guardian HR

Guardian HR can assist you in reviewing job descriptions and communicating any reclassification to your employees. Reach out to your dedicated HR Manager for personalized support and guidance.

State-Specific Regulations

Only a few states have salary thresholds higher than the current federal requirement. If you operate in one of these states and comply with their laws, no additional action is necessary at this time.

Currently, several lawsuits challenging this law are pending in Circuit Courts and the Supreme Court of the United States (SCOTUS). While Texas is the only state to have ruled before the July 1 implementation, other rulings are expected in the coming weeks or months.

Upcoming Salary Increase

Be prepared for a second wave of salary increases set to take effect on January 1, 2025. The new threshold will be $1,128 per week, annualizing to $58,656. GUARDIAN-HR will keep you informed with LAWlerts on the upcoming judgments and anticipated rulings.

Stay Updated with Guardian HR

Stay tuned for updates and guidance from Guardian HR to ensure your business remains compliant with all regulatory changes. For any questions or assistance, contact your dedicated HR Manager today.

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Guardian HR Staff

Guardian HR Staff

In-House Writing Team

Read informative articles, insights, and other resources right from the experts on the Guardian HR team.