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Department of Labor’s April 2024 final rule had mandated that employees (in most cases) who are classified as exempt from overtime by their employer make at least $43,888 in base salary beginning on July 1, 2024 (up from the previous $35,568 annual standard outlined in the DOL’s 2019 final rule) and $58,656 in base salary beginning on Jan. 1, 2025.

WorldatWork HRCI* SHRM** Credits 1 compensation domain-specific 1 1 *HRCI: This program has been approved for 1 (HR (General)) recertification credit hour toward aPHR™, aPHRi™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through the HR Certification Institute.

WorldatWork HRCI* SHRM** Credits 1 Compensation 1 1 *HRCI: This program has been approved for 1 (HR (General)) recertification credit hour toward aPHR™, aPHRi™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through the HR Certification Institute.

“Organizations should evaluate if their employee salaries are below the minimum threshold for either the July 1 or January 1 date, and if [those salaries are], they should either convert those employees to hourly or raise the salary to the minimum threshold,”advised James Reid, a partner and employment and business attorney at law firm Honigman LLP.

Access additional Workspan Daily articles related to H.R. 1: The Facts on Tax: Breaking Down the H.R. 1 Overtime, Tips Provisions;How H.R. 1 Changes Your Section 127 and 529 Education Programs;Prepare Your Systems for H.R. 1-Related Reporting and Administration;New U.S.

“HR leaders should be prepared for heightened scrutiny around compensation, particularly as 1 in 3 employees (32%) feel their pay does not reflect their performance.”

WorldatWork HRCI* SHRM** Credits 1 compensation-domain specific 1 1 *HRCI: This program has been approved for 1 (HR (General)) recertification credit hour toward aPHR™, aPHRi™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through the HR Certification Institute.

WorldatWork HRCI* SHRM** Credits 1 benefits domain-specific 1 1 *HRCI: This program has been approved for 1 (HR (General)) recertification credit hour toward aPHR™, aPHRi™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through the HR Certification Institute.

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;The threshold for coverage will be lowered in three phases, beginning with employers that have at least 25 employees on Jan. 1, 2025; those with at least 11 employees beginning Jan. 1, 2026; and those with at least one employee beginning Jan. 1, 2027.; Additionally, this legislation broadens the definition of who qualifies as a family member when a worker wants to use paid sick days to care for a loved one to include those “other than that person’s own minor children,” which is a limitation under the previously established laws.