threshold

The salary threshold for exempt employees is the minimum salary that an employee must be paid in order to be exempt from overtime pay requirements. The Fair Labor Standards Act (FLSA) sets the federal minimum salary threshold for exempt employees, but states may also set their own salary thresholds. In 2023, the federal minimum salary threshold for exempt employees is $684 per week, or $35,568 per year. The salary threshold for exempt employees is adjusted periodically to keep pace with inflation.

The salary threshold for exempt employees is important because it helps to ensure that employees are paid fairly for their work. Exempt employees are not eligible for overtime pay, so it is important to make sure that they are paid a salary that is commensurate with their experience and responsibilities. The salary threshold also helps to prevent employers from misclassifying employees as exempt in order to avoid paying overtime wages.

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With the rise in inflation and the ever-changing economic landscape, it is important to stay up-to-date on the latest exempt salary threshold by state. The exempt salary threshold is the minimum salary that an employee must be paid in order to be exempt from overtime pay. In other words, if an employee is paid less than the exempt salary threshold, they are entitled to overtime pay for any hours worked over 40 in a workweek by federal law. The exempt salary threshold varies from state to state, and it is important to be aware of the specific threshold for your state in order to ensure compliance with labor laws.

There are a number of benefits to increasing the exempt salary threshold. First, it can help to reduce wage inequality by ensuring that all workers are paid a fair wage for their work. Second, it can help to boost the economy by increasing consumer spending. Third, it can help to reduce the number of lawsuits filed against employers for unpaid overtime wages.

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The U.S. Department of Labor (DOL) has announced a new salary threshold for overtime eligibility for exempt employees. Effective January 1, 2025, the minimum salary required for an employee to be considered exempt from overtime pay will increase from $684 per week to $1,026 per week, or $53,430 per year for a full-time employee. This new threshold is the first update to the overtime salary threshold since 2004 and is intended to ensure that overtime pay protections keep pace with rising wages and the cost of living.

The new salary threshold is expected to have a significant impact on employers and employees alike. Employers will need to review their current pay practices to ensure that they are in compliance with the new threshold. Employees who are currently classified as exempt may find themselves eligible for overtime pay under the new rule. This could lead to increased labor costs for employers and higher take-home pay for employees.

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