Less than six months after the Department of Labor (DOL) adjusted overtime salary thresholds, another adjustment is around the corner. Starting January 1, 2025, executive, administrative and professional employees who are exempt from overtime based on their duties must earn a minimum annual equivalent of $58,656 ($1,128 per week). The change equates to a nearly 34% increase since the July 1 adjustment, setting the threshold at $43,888 ($844 per week).
The salary threshold for highly compensated employees (HCEs), who need only meet one of the exemption-qualifying duties, will jump to $151,164 annually on January 1. In the setting of the HCE earnings formula, the DOL based adjustments on the 85th percentile of all full-time salaried workers nationally.
Following the 2025 salary adjustments, the next adjustment is slated for July 1, 2027, and every three years thereafter.
If your business needs guidance to prepare for the overtime rule, join us November 6 for a DOL overtime debrief presented by Rachel Gast, director of HR Consulting, or contact our HR Consulting concierge desk.