New Overtime Exemption Rule: How to Communicate Changes to Employees
The minimum salary required to be classified as exempt from overtime under federal law will increase on July 1, 2024 and again on January 1, 2025 . If your exempt employees' salaries fall below the new threshold, you will generally either have to:
Raise their salaries to the new requirement; or
Reclassify the affected employees as non-exempt and pay them overtime whenever they work more than 40 hours in a workweek.
Once you have evaluated your options , be sure to develop a plan for communicating the changes to employees. Here are some guidelines for doing so.