Prepare for the 2025 Changes: Navigating New Minimum Salary Levels for Exempt Employees

Date: Wednesday, December 11, 2025    

Time: 9am – 10:30am  

Location: Midland College Advanced Technology Center, 3200 W Cuthbert Ave, Midland, TX 79701

Description:

The U.S. Department of Labor has raised the minimum salary threshold for exempt positions from $35,568 to $43,888 as of July 1, 2024. Now, organizations must prepare for the next significant increase to $58,656, which takes effect on January 1, 2025. This nearly $23,000 increase over the previous year will have a considerable impact, and preparation is crucial. Failing to adequately address these changes could result in serious financial and employee relations challenges for your organization.

The Fair Labor Standards Act (FLSA) is one of the most complex and misunderstood employment laws in the U.S., governing wage payment and overtime eligibility. Under the FLSA, employers must pay overtime unless an employee qualifies for certain exemptions. These include the White-Collar Exemptions, as well as the 7(i) exemption for retail and service establishments. Additionally, the Department of Labor (DOL) has various methods for calculating overtime, further complicating compliance.

Many employers are unaware of the specific rules governing which positions qualify for white-collar exemptions, how to handle commissions, shift differentials, production bonuses, and how to account for training and travel time. Compliance is not just about federal laws; state and local regulations, as well as any government contracts, may also have their own wage and overtime requirements.

Staying compliant with these evolving regulations is critical to your organization’s success. Failure to do so could result in costly penalties, potential lawsuits, and damage to employee relations. By proactively preparing for these upcoming changes, organizations can minimize risks and ensure a smooth transition while protecting both their financial interests and workforce morale.