As of today, July 1, 2024, employees who earn less than $43,888 annually ($844 a week) will have to be paid overtime, even if they’re classified as a manager or professional. Nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis may be used to satisfy up to 10 percent of the standard salary level.
Employers should consider the economic impact of classification decisions, including whether the impacted employees often work overtime. If so, it may be a better option to increase the employee’s salary above the new salary minimum.
Please do not hesitate to contact our employment attorneys, Will Cherry or Jennifer Weaver, at (919)-787-8880 if you have any questions.
