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May 10, 2024
Posted Under: Finance

The U.S. Department of Labor issued a final rule to increase the minimum salary threshold for the “white collar” overtime exemption under the Fair Labor Standards Act (FLSA) from its current rate of $35,568 to $43,888 per year starting on July 1, 2024 and increasing to $58,656 per year starting on January 1, 2025. To be exempt from overtime pay under this provision, workers must be paid a salary of at least $58,656 and must also meet certain job duties for executive, administrative, and professional employees. Workers with a salary below this threshold must be paid overtime if they work more than 40 hours a week. Currently, the State of Alaska requires salaried employees who are exempt from the minimum wage and overtime requirements under Alaska Statute 23.10.055(b) to maintain a salary that is equivalent to two times the minimum wage for the first 40 hours worked in a work week. In 2024, that rate is $48,796.80/year. The State of Alaska has not yet released Wage and Hour requirements for 2025. That being said, employers cannot pay their employees less than the federal minimum. Now is the time to review jobs at your organization that will not meet the federal minimum and adjust your budget accordingly. We will share information on the State of Alaska changes once it is released. Contact us if you have questions or reach out to