The New Minimum Salary Trap for Your Nonexempt Employees

Oh, I’m so glad you asked that question. It’s a big concern that that employers have right now, because as of July 1st, employers were paying employees a salary, which not paying overtime, which really is exempt, not salary. And now the Department of Labor issued a regulation that says as of July 1st, if that person makes less than $43,888. They are no longer exempt. You can still pay them a salary, but you need to pay them halftime for anything over 40 hours. Now that’s fine. Okay. It wasn’t that big of an amount. However, come January 1st of 2025, it’s going up to $58,000 and change.