S2/Ep4: DOL Finalizes Increase to Salary Threshold for FLSA Artwork

Pay Matters with David Weaver

Most organizations fail to pay their employees properly — not because they don’t want to, but because they don’t approach compensation with a plan. The compensation landscape is changing rapidly. If you don’t pay your employees what they’re worth, not only will your competitors leave you behind, but you’ll also leave yourself open to legal, social, and political backlash. As an HR professional or manager, how do you navigate the confusing world of compensation? Pay Matters is your go-to podcast for demystifying the art and science of employee compensation. David Weaver and his guests will discuss how to calibrate base salaries, reward programs and enticing incentives so you'll be able to retain your best employees.

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Pay Matters with David Weaver

S2/Ep4: DOL Finalizes Increase to Salary Threshold for FLSA

October 07, 2024 • David

The U.S. Department of Labor has finalized an update to the Fair Labor Standards Act (FLSA) regarding salary minimums for exempt employees, commonly known as the "Overtime Rule." This rule, effective July 1, 2024, increases the annual compensation threshold for exempt employees from $35,568 to $43,888. Further increases are scheduled for 2025 and every three years thereafter. These adjustments are designed to reflect current wage data and ensure fair compensation for employees who are eligible for overtime pay. This discussion emphasizes the importance of compliance with FLSA regulations, highlighting the potential consequences of misclassifying employees and offering advice for employers to review their current classifications and implement necessary adjustments.