Flsa 2025 Salary Threshold Update Are You Ready For The January 1st Increase

FLSA 2025 Salary Threshold Update: Are You Ready For The January 1st ...

FLSA 2025 Salary Threshold Update: Are You Ready For The January 1st ... In late april 2025, the u.s. department of labor (dol) asked the fifth circuit court of appeals to pause its appeal of a texas federal court decision that blocked the 2024 rule increasing the salary threshold for flsa exempt employees. Is your business ready for the major flsa salary threshold increase hitting in january 2025? this change could significantly impact your payroll, employee classifications, and bottom line.

Preparing For The FLSA Salary Threshold Increase On January 1

Preparing For The FLSA Salary Threshold Increase On January 1 The second increase was to go into effect on january 1, 2025, increasing the salary minimum to $1,128 per week ($58,656 per year). the new rule also increased the minimum salary threshold under the highly compensated exemption, and provided automatic salary increases every three years. On jan. 1, 2025, the rule’s new methodology takes effect, resulting in the additional increase. in addition, the rule will adjust the threshold for highly compensated employees. As discussed in our previous post, in april 2024, the dol released a new rule that raised the salary threshold for the "white collar" exemptions. The u.s. department of labor’s two part approach to its overtime rule—providing for one raise of the salary threshold level on july 1 and another on jan. 1, 2025—gives employers options.

January 2025 Flsa Minimum Salary Increase - Nonie Magdaia

January 2025 Flsa Minimum Salary Increase - Nonie Magdaia As discussed in our previous post, in april 2024, the dol released a new rule that raised the salary threshold for the "white collar" exemptions. The u.s. department of labor’s two part approach to its overtime rule—providing for one raise of the salary threshold level on july 1 and another on jan. 1, 2025—gives employers options. Employers no longer need to increase exempt employees’ salary levels to meet the second threshold increase to $1,128 per week ($58,656 per year) effective january 1, 2025. Review all salaries being paid to exempt employees to ensure they are at or above the minimum salary required and confirm the posi on(s) are correctly classified in accordance with flsa requirements. Now, just weeks away from the january 1, 2025 increase of $58,656/year, part two is no longer moving forward. in fact, the decision made by the federal judge in texas not only eliminates the upcoming increase but nullifies the increase many employers already implemented just a few short months ago. The upcoming flsa salary threshold increase is more than just a policy shift—it’s a change that requires thoughtful planning, budgeting, and communication. with january 1, 2025, fast approaching, the sooner you act, the more prepared your business will be.

FLSA 2025 Salary Threshold Update: Are You Ready for the January 1st Increase?