As a business leader, staying compliant with labor laws is crucial and arguably the #1 employment liability. The Department of Labor (DOL) has announced a significant change to the minimum annual salary required to classify an employee as exempt from overtime laws, with the first stage of the increase taking effect on July 1, 2024. HumCap is here to help your business ensure you remain compliant.

What Changed?

The DOL has raised the minimum annual salary threshold for exempt employees in two stages:

  • Current Threshold: $35,568 annually.
  • New Threshold (Effective July 1, 2024): $43,888 annually.
  • Further Increase (Effective January 1, 2025): $58,656 annually.

Understanding the Impact of New Overtime Laws

These changes will affect many employees whose salaries currently fall between the old and new thresholds. Employers must reassess their employee classification and compensation strategies to comply with the new rules. Failure to do so can lead to fines, legal issues, and operational disruptions.

To learn more about these changes, click here to view HumCap’s webinar on the subject. Passcode: jyNs@4Wg

Important Development For Texas Businesses: 

The Texas Federal Court has delayed the effective date of the DOL’s new overtime rule as it applies to Texas state government workers. Learn more about this change from our trusted partner here.

Key Considerations for Business Owners

  1. Employee Count: How many of your currently exempt employees fall under the new salary threshold?
  2. Compliance History: Have you encountered issues with overtime compliance in the past?
  3. Employee Queries: How do you handle situations when employees question their overtime pay?
  4. Overtime Management: What systems do you have in place for tracking and managing overtime?
  5. Payroll Systems: Have you updated your payroll systems to reflect the new overtime rules?
  6. HR Readiness: Is your in-house HR team prepared to implement these changes?
  7. Employee Communication: How do you plan to explain these changes to your impacted employees?

How HumCap Can Assist

At HumCap, we specialize in helping businesses adapt to changes in labor laws. If you find yourself struggling or stressing to answer the above questions – we’re here to help. Our dedicated team of HR experts can offer quick, pragmatic solutions to help you and your business adapt. From a compliance check to policy development to extended ongoing support – our team of certified HR professionals has a proven track record of helping companies transition smoothly to new regulations. We understand the challenges and nuances of labor law compliance and are here to support you every step of the way.

Stay compliant and keep your business thriving with HumCap’s expert guidance, all while saving time and money.

Schedule a discovery call today to ensure you’re compliant and avoid penalties.

Book your call now.