The second increase to the annual salary threshold that determines if an employee is exempt from overtime becomes effective on January 1, 2024, and is set at $58,656. In addition to the salary threshold, an employee’s position must fall under the Executive, Administrative and Professional overtime exemption, as well as meeting the following tests.

1. be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed;
2. be paid at least a specified weekly salary level; and
3. primarily perform executive, administrative, or professional duties, as provided in the Department’s regulations.

Although cases are pending in Texas declaring the salary threshold unenforceable, no decisions have been made yet.  At this time, employers should begin to review the salaries and job duties of current exempt employees to prepare for the January change. 

Do your managers know what to say when an employment verification or reference is requested? Employers need to make sure managers know how handle requests A few guidelines.   

•  Do not release information over the phone unless the employee has sent notification to expect a call or a written release with the employee's signature is provided.
• Provide only truthful, non-inflammatory information and stick to the facts.
• Only provide information on what is requested; do not volunteer additional information.
• If salary information is requested; do not release any information unless you have the request in writing and the employee has approved the release of the information.

 If possible, the best practice is to refer all requests to Human Resources.  Good documentation and consistent procedures are key and can help avoid potential liability.