Desperately Fighting for Fair Pay: Why Raising the Minimum Salary for Exempt Employees in 2021 is Long Overdue

Are you tired of struggling to make ends meet on a minimum salary? Have you ever felt like no matter how hard you work, you just can't get ahead? If so, you're not alone.

For years, exempt employees have been fighting for fair pay. Exempt employees are those who are salary-based and not qualified for overtime pay. And with the current minimum salary for these employees stuck at $23,660 per year – a level that hasn't increased in over ten years – it's no wonder why workers are desperate for change.

But why is raising the minimum salary for exempt employees in 2021 so important? Let's take a look at some alarming statistics that paint a bleak picture for American workers:

• According to the Economic Policy Institute (EPI), only 11.7% of American workers are currently covered by a union – a sharp decline from the peak union coverage level of 33% in the 1950s.
• The EPI also reports that wages for the bottom 10% of earners in the US have remained stagnant for over 30 years.
• Meanwhile, CEO pay has skyrocketed, increasing by 940% since 1978, while worker pay has only gone up by 12% during that same period.

It's clear that the system we have in place isn't working – but raising the minimum salary for exempt employees could be the solution we've been looking for. By doing so, we can take an important step towards reducing income inequality, boosting morale amongst workers, and ultimately leading to improved productivity and profitability for companies.

Workers aren't asking for an unreasonable amount – they simply want to earn a living wage that allows them to support themselves and their families. And by endorsing this change, companies can demonstrate that they value their employees, fostering higher retention rates, increased motivation, and greater overall job satisfaction.

Raising the minimum salary for exempt employees in 2021 is long overdue. It's time for companies to prioritize fairness and equality for all workers – so let's get it done.

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Introduction

Like many American workers, one of the primary concerns of exempt employees is fair compensation for their work. The minimum salary threshold for exempt employees has been something of a hot-button issue in recent years, with many calling for significant changes to be made to ensure fair pay for all. In this blog article, we'll be discussing why raising the minimum salary for exempt employees in 2021 is long overdue.

The Current Minimum Salary for Exempt Employees

Currently, the minimum salary threshold for exempt employees is $455 per week or $23,660 per year. This minimum salary has not been updated since 2004, with calls for an increase rising steadily over the last several years.

The Changing US Economy

One of the primary factors driving the push for increased minimum wages for exempt employees is the changing nature of the US economy. With a shift towards more service-based industries, traditional salaried roles are decreasing, while nonexempt hourly roles are increasing. Unfortunately, hourly workers tend to be paid less than exempt workers, which only serves to make income inequality worse.

Inflation and the Cost of Living

Inflation and the rising cost of living also play important roles in this equation. When the current minimum salary was established in 2004, the cost of living was significantly lower in most parts of the country. Today, with inflation rates bumping up against 2%, there is a clear need for an adjustment in salary thresholds to ensure that people can maintain a reasonable standard of living.

The Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is the legislation that currently dictates worker protections in the United States, including minimum wage laws. While the FLSA sets standards across the board, it is up to individual states to establish their own laws. According to the federal government, any salaried employee making less than $913 per week as of January 1, 2021, is classified as nonexempt, requiring overtime pay for any time worked beyond their normal hours.

Raising the Minimum Salary Threshold

The Proposed New Salary Thresholds

A proposal that requires increasing the exempt employee weekly wage to $684 per week, thus raising exempt salaries to approximately $35,568 per year, the proposed law follows quite closely the requirements established under Obama regulations in early 2016 through a modification subject to state-level variations. A WhiteHouse release displayed guaranteed steps to address different salary structures necessary to safeguard income.

The Impact of Increasing the Minimum Salary Threshold

An increase in the minimum salary threshold for exempt employees will have a positive impact on millions of American workers. For starters, an increased salary threshold would mean that more people would be classified as exempt, meaning they would be eligible for overtime. This could significantly reduce wage inequality between exempt and nonexempt workers. Additionally, higher wages would reduce financial strain and promote consumer spending, boosting small businesses and economic growth across the country.

Conclusion

Raising the minimum salary for exempt workers in 2021 is undeniable overdue. With changing economies, the cost of living constantly on the rise, and workers desperately struggling to make ends meet despite working full-time at salaried positions, it's time for legislators to step up and recognize the inherent flaw in wage-based legislation. More so both the government and private employers should come to a commonality of invigilating this further enabling fair pay for all exempt workers driven by productivity.

Desperately Fighting for Fair Pay: Why Raising the Minimum Salary for Exempt Employees in 2021 is Long Overdue

It is time that exempt workers receive the fair pay they deserve for the hard work they put in day in and day out. As we move forward into 2021, the need to raise the minimum salary for these invaluable employees has never been more pressing. By doing so, we can work towards a more just and equitable workplace that rewards dedication and skill.

If you have any thoughts or experiences related to changes in the minimum salary for exempt employees, please feel free to share them in the comments section below. Your insights could help shape the conversation around fair pay and how to achieve it.

Thank you for taking the time to read about this important issue. Let's come together to fight for fair pay and a better future for all workers.

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Frequently Asked Questions about Raising the Minimum Salary for Exempt Employees in 2021

What is the current minimum salary for exempt employees?

As of 2020, the minimum salary for exempt employees is $35,568 per year or $684 per week.

Why is raising the minimum salary for exempt employees important?

Raising the minimum salary for exempt employees would ensure that more workers are paid fairly for their work and would help to reduce income inequality. It would also incentivize employers to provide better salaries and benefits to their employees, which could improve overall job satisfaction and productivity.

What are the proposed changes to the minimum salary for exempt employees in 2021?

The proposed changes would raise the minimum salary for exempt employees to $47,476 per year, or $913 per week. This would be a significant increase from the current minimum salary and would benefit millions of workers across the country.

When will the proposed changes to the minimum salary for exempt employees take effect?

The proposed changes are expected to take effect in 2021, although the exact date has not yet been announced. Employers should prepare to adjust their payroll practices accordingly.

How can I advocate for raising the minimum salary for exempt employees?

You can contact your elected representatives and urge them to support legislation that would raise the minimum salary for exempt employees. You can also speak out on social media and in your community to raise awareness about the issue.

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