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Navigating the 2024 Salary Exemption Rule: What Employers Need to Know

Today, we’re diving into the latest buzz in the HR world: the 2024 Salary Exemption Rule. As employers, staying informed about regulatory changes is crucial for maintaining compliance and effectively managing your workforce. Join us as we unpack the key details of this new rule, explore its implications for your organization, and discuss what steps you need to take to ensure compliance.

Understanding the 2024 Salary Exemption Rule:

The 2024 Salary Exemption Rule represents a significant shift in how employers determine which employees are eligible for overtime pay. This rule raises the salary threshold for exempt employees, meaning that more workers may now be entitled to overtime pay.

New Thresholds:

Effective January 1, 2024, the new salary threshold for exempt employees is set at $55,000 per year. This marks a considerable increase from the previous threshold and reflects changes in the cost of living and wage trends.

Implications for Employers:

For employers, the 2024 Salary Exemption Rule necessitates a thorough review of current employee classifications and compensation structures. It’s essential to identify employees who may now fall below the new salary threshold and assess their eligibility for overtime pay.

What Employers Need to Do:

  1. Review Employee Classifications: Conduct a comprehensive review of employee classifications to ensure compliance with the new salary threshold. Identify employees who may transition from exempt to nonexempt status as a result of the rule change.
  2. Adjust Compensation Structures: Consider adjusting compensation structures for affected employees to ensure compliance with overtime pay regulations. This may involve increasing salaries to meet the new threshold or implementing overtime pay for eligible employees.
  3. Communicate Changes: Transparent communication is key during periods of regulatory change. Clearly communicate any updates to employee classifications or compensation structures, ensuring that affected employees understand the reasons behind the changes and how they may be impacted.
  4. Stay Informed: Regulatory landscapes are constantly evolving, so it’s crucial to stay informed about any future updates or amendments to the 2024 Salary Exemption Rule. Regularly monitor official sources and industry publications for the latest news and insights.


The 2024 Salary Exemption Rule presents both challenges and opportunities for employers. By understanding the new thresholds, assessing their implications, and taking proactive steps to ensure compliance, employers can navigate this regulatory change successfully. Stay tuned to our blog for more updates and insights on navigating the everchanging world of human resources.


Felicia G. Harris
​Principal Owner

This Podcast will provide you with the latest human resources trends whether you only do business in your home state or across the United States. You will be able to call in and talk with human resources professionals about the issues that keep you up at night, and more importantly, hear best practices from other business owners that have been in your shoes



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