In a repeat of 2016, once again a federal court in November issued a ruling vacating the Department of Labor’s 2024 increased salary thresholds for exempt (salaried) status.
The Department of Labor’s earlier 2024 increased requirements for exempt status of $43,888 (7/1/24) and $58,656 (1/1/25) have been completely rolled back to the prior 2019 level of $35,568.
This means that any employees who on 7/1/24 were transitioned from salaried (exempt) to hourly (nonexempt), should be transitioned back to their prior salaried (exempt) status as long as their salary is at least $35,568.
To the obvious question of will this change again anytime soon? The only real answer is…maybe. Variables in play include the Department of Labor’s appeal of the federal court’s decision, and of course a new incoming administration which most feel will also have a say in what happens next.
As a reminder, to be considered as an exempt (salaried) worker, employees must:
Be paid on a fixed salary of at least $684 per week ($35,568 annually)
Perform executive, administration, or professional roles
Interested in learning more? We’re here to help.
BMA Financial Insurance Services is your trusted partner that can help bring clarity and understanding to whatever your situation may be. Let us help explain your options. Our focus is on educating our churches and pastors to help them make well informed decisions about these very important topics.
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Mark Bradley
BMA Financial - Insurance Services
501.499.4205
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