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New Minimum Wage for
Salaried Exempt Employees

Starting on July 1, 2024, and January 1, 2025, new minimum wage requirements for salaried exempt employees will take effect. Employers need to understand and comply with these changes to ensure they are paying their salaried exempt employees the correct amount.

 

In summary, the new minimum wage for salaried exempt employees takes effect on July 1, 2024, and January 1, 2025. Make sure to adjust salaries accordingly to comply with the new law, support your employees, and avoid legal complications.

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Note: Positions must still meet the duties test in addition to the new salary thresholds. 

 

Read It Here

What You Must Do & When:

  • Adjust Salaries by July 1, 2024: Make sure that all salaried exempt employees are paid at least the new minimum wage effective from this date. 
    $844 per week
    $43,888 per year

  • Review Again by January 1, 2025: Once more, ensure that your salaried exempt employees' pay meets the new minimum wage requirements. Adjust salaries as necessary.
    $1,128 per week
    $58,656 per year

  • Communicate Changes: Inform your salaried exempt employees of any pay changes resulting from the new minimum wage laws. Provide clear communication about how these changes affect them.

  • Maintain Records: Keep thorough records of employee salaries and any adjustments made in response to the new laws to ensure compliance and support your payroll decisions.

Why You Must Do It:

  • Legal Compliance: Complying with the new minimum wage laws will help you avoid penalties, fines, and potential legal issues.

  • Fair Compensation: Paying your salaried exempt employees at least the new minimum wage ensures they receive fair compensation for their work.

  • Employee Morale and Retention: When employees are paid fairly, they are more likely to feel valued and motivated to perform well in their roles.

  • Reputation Management: Employers who comply with labor laws and treat employees fairly can improve their reputation both within and outside the company.

  • Avoid Litigation Risks: Ensuring your pay practices meet the new minimum wage laws can protect your business from lawsuits and other legal disputes.

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