Happy Monday!! It's always fun to kick off the week reading about a Friday Court decision that only adds to the Q4 scramble by HR professionals. As you can see from the article below, the salary threshold for white-collar exemptions from overtime that increased from $35,568 to $43,880 per year on July 1st and had been set to rise to $58,656 annually as of Jan. 1, 2025... have been struck down.
So what to do now? If you already made salary adjustments prior to July 1st or in anticipation of the changes on January 1st, we recommend leaving those changes in place. While it may be tempting to revert back to former salary levels, that is a "take away" of epic proportions that likely not land well with those impacted. If you took advantage of these changes to audit your wage & hour practices and ensure no one was misclassified, well done... you're better prepared going forward. Don't forget.. specific state laws & changes may still apply (For example .. NY implemented it's own changes that aren't impacted by the federal court ruling).
And if you're still wondering what to do or have any questions, reach out to us at HRHappens.com and we can walk you through this potential compliance and employee relations minefield.
#HRHappens #WageHour