WGP Minimum Wage and Overtime

Hi all- 

As your partners in growth, we strive to keep you informed about the changes that will directly impact you or your business. The Fair Labor Standards Act (FLSA) has established new minimum wage and overtime pay standards, so we have some important updates for you regarding the new rules. 

Minimum Wage Increase: 

Recent updates in the 2024 Final Rule introduce two increases in the minimum salary threshold, with automatic updates every three years based on earnings metrics. Beginning July 1, 2024, the new minimum salary threshold is $43,888 per year, increasing to $58,656 per year from January 1, 2025. Highly Compensated Employees (HCE) will also see an increase in their salary threshold. 

For business owners, this increase means a necessary adjustment in payroll expenses. It is essential to review your current payroll structure to ensure compliance with the new minimum wage. This might involve assessing employee salaries, updating payroll systems, and potentially adjusting product pricing to afford the increase. 

As a customer, you can expect to start seeing some price adjustment for goods and services across the board. This is a natural impact as businesses respond to this adjustment and strive to maintain the financial health of the company while also complying and ensuring liveable wages for employees. 

Overtime Rule: 

The employer’s responsibility is to track employees’ hours and pay premium “overtime rate” of 1.5 times the employees’ regular pay rate for hours worked over 40 per work week. 

Employers must respond to these changes by either increasing salaries, reclassifying employees, or restructuring roles. Legal challenges to the rule may occur, but businesses are advised to focus on changes to the $43,888 salary level initially. 

Both the minimum wage increase and the overtime rule updates aim to create more financial stability for workers while presenting challenges and opportunities for businesses. As your trusted growth partners, we recommend proactive preparation for these changes to ensure a smooth transition. We are on standby if you have questions regarding these changes. For more information, you can read the article here: https://www.dol.gov/agencies/whd/overtime/rulemaking 

Thank you for your continued partnership. 

Marcy