The Federal Department of Labor (DOL) has increased the salary threshold for Fair Labor Standards Act (FLSA) exempt employees to:
· $43,888 a year or $844/week effective July 1, 2024.
· $58,656/year or $1,128/week on January 1, 2025
· Threshold will increase every three years after July 1, 2027
What does this mean for nonprofits?
Nonprofit employees are subject to the FLSA. (Independent Contractors, Volunteers and qualifying Interns/Trainees are not.) Usually, hourly employees are subject to the FLSA meaning they are eligible for overtime pay for any work performed over 40 hours in one week. They are called “non-exempt” employees. This rule change does not affect them.
Typically, salaried employees working in a professional or administrative capacity are not subject to the FLSA. They are considered “exempt” employees and are not eligible for overtime pay for hours worked over 40 in one week. This rule change will affect any exempt employee who is earning less than the minimum threshold salary. Starting on July 1, 2024, organizations will need to pay salaried employees earning less than $844/week overtime pay for any work performed over 40 hours in one week.
If you have questions about this new DOL rule change and how it may affect your organization, please contact us at Law Offices or Elizabeth Reinhardt & Associates. We are happy to answer any questions you may have concerning employer overtime requirements or any other employment law issue.