Exempt Salary Levels Set To Increase On July 1, 2024

The minimum salary for exempt salaried employees is set to increase on July 1, 2024, from the current level of $684 per week to a new level of $844 per week. This increase applies to executive, administrative and professional employees, and means that exempt salaried employees like supervisors, managers, marketing managers, public relations, Registered Nurses, Medical Technologists, and others must receive a guaranteed salary, not subject to deduction, of at least $844 per week. 

In addition, the salary level will increase again on January 1, 2025, at which point the minimum salary level will be $1128 per week.

Important Points To Remember

In Wage and Hour accounting, each week stands alone, for purposes of wage and hour compliance. You can pay employees at other intervals like bi-weekly, semi-monthly, or monthly, but the salary amount must be equal to $844 per week, which would be equal to $43,888 per year. Paid monthly, the salary would be $3657.33.

Exempt employees must receive a guaranteed salary, not subject to deductions for things like performance, attendance, breakage, loss, etc. There are a few minor exceptions.

An exempt employee must be paid by a salary, not commission, piece rate, hourly rate, etc.

It’s important to note that this must be a guaranteed salary, meaning you can’t deduct for things like production, performance, etc. Deductions for taxes and insurance are okay, but most other deductions are prohibited.

Subject to a few exceptions, an exempt employee must receive the full salary for any week in which the employee performs any work, regardless of the number of days or hours worked.

An employer is allowed to prorate the weekly salary during the initial and terminal weeks of employment.

We are here to help! Please contact one of our Seay Management Consultants team members if you would like to have us complete an exempt/non-exempt analysis to make sure all of your exempt employees are properly classified.

Scroll to Top