Employers need to be aware some major changes in the basic salary exemptions under the FLSA and the Pennsylvania Minimum Wage Act as the new year unfolds. Starting from January 1, 2025, the exemption level of employees that fall under administrators, executives and professional employees of FLSA will go up to $1,128 weekly or $ 58,656 annually. Such a rise also relates to the exemptions under the Pennsylvania Minimum Wage Act to indicate a change in an overall positive trend towards enhancing wage parity and wages equality across sectors.
The increase in these factors has the potential of affecting thousands of employees especially those who previously fell in the FLSA exempt category of employees because of the new high salary levels. New thresholds for salaried workers mean more employees are covered by overtime pay rules meaning that many more supervisory, administrative, or professional workers who currently earn below the increased thresholds will potentially enjoy higher wages.
Moreover, the FLSA salary basis test providing that the highly compensated employees, or HCEs, are exempt from the requirements of the legal act, has been raised and is now $151,164 per year. This alteration brings focus on enhancing the perception of what qualifies as an executive and senior-working level employee while, at the same time, not allowing lower working level management or employees with highly demanding jobs to be left out of overtime protection.
The change in thresholds for determining salaries is an important movement towards achieving equal compensation of employees in companies, as well as remedial action in pay discrimination, distinct between those employed in junior positions and executives. With respect to the existing increases in wages and salaries, mechanisms that correlate these with costs such as cost of living especially with regard to particular regions like Pennsylvania, it …
Mette law firms in harrisburg pa team, along with Kathi Simpson and Kathy Speaker MacNett, has been following these changes and is prepared to help businesses understand how or whether these alterations affect their employees. “These updates to the salary thresholds are crucial for both businesses and their employees,” said Simpson. “Companies must ensure their compliance to avoid any legal pitfalls, and employees can benefit from these changes in the form of increased eligibility for overtime pay.”
Mette Law Firm is committed to helping businesses stay compliant with labor laws and providing expert guidance on all matters related to business law. For more detailed information about how these changes may apply to your business,
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Mette Law Firm provides a broad range of legal services with a particular focus on business law, labor and employment attorney harrisburg pa, and corporate matters. With a deep understanding of the ever-changing legal landscape, Mette’s attorneys are committed to delivering effective and practical solutions tailored to meet the unique needs of each client. The firm’s attorneys bring years of experience, including experts like Kathi Simpson and Kathy Speaker MacNett, who specialize in advising businesses on compliance with labor laws and regulations.