Increase to Salary Minimum Requirement for Exempt Employees
Effective July 1, 2024, the minimum salary requirement for executive, administrative, and professional (“EAP”) employees was increased from $684 per week ($35,568 per year) to $844 per week ($43,888 per year). This means that employees who have been classified as exempt under the EAP exemption will now need to meet the new minimum salary requirement. For those employees who do not meet the threshold, employers will need to decide whether to increase their salary or convert those employees to hourly, non-exempt employees. If salary increases are an option, consider the broader implications under Oregon’s Equal Pay Act for employees doing comparable work. On January 1, 2025, the minimum salary for those employees will increase again, up to $1,128 per week ($58,656 per year). Beginning July 1, 2027, the minimum salary amount will automatically update every 3 years. Although several lawsuits were filed challenging the enforceability of this rule, only one injunction was granted, and it was limited to the employees of the State of Texas.
For more information on the minimum salary requirement, please contact our attorneys, Amanda Walkup, Mario Conte, and Elizabeth Stubbs.
This summary provides general information and should not be construed as legal advice or a legal opinion on any specific facts or circumstances. If you have specific legal questions, you are urged to consult with your attorney concerning your own situation.