exempt Archives » Page 3 of 3 » edouniversity.edu.ng

3+ Important Exempt Threshold 2025 Changes

The exempt threshold 2025 refers back to the greenback quantity above which workers are exempt from extra time pay beneath the Truthful Labor Requirements Act (FLSA). In 2023, the edge is $684 per week or $35,568 per yr. The Division of Labor (DOL) has proposed elevating the edge to $825 per week or $43,450 per yr in 2025.

Elevating the exempt threshold would profit employers by decreasing their labor prices. It might additionally profit workers who’re presently exempt from extra time pay by giving them the precise to extra time pay after they work greater than 40 hours per week. Nevertheless, elevating the edge may even have some detrimental penalties, similar to decreasing the variety of jobs out there for low-wage staff.

6+ Ways to Prepare for the 2025 Exempt Minimum Salary Increase

The exempt minimal wage is the minimal wage that an employer should pay an worker in an effort to qualify for sure exemptions from the Truthful Labor Requirements Act (FLSA). The FLSA is a federal legislation that units minimal wage, extra time pay, and different office requirements. The exempt minimal wage is adjusted periodically by the U.S. Division of Labor to replicate adjustments in the price of residing.

The exempt minimal wage for 2025 has not but been decided, however it’s prone to be larger than the present exempt minimal wage of $684 per week. The rise within the exempt minimal wage is meant to make sure that staff who’re exempt from the FLSA’s extra time pay necessities are literally being paid a good wage.