Economy of Workers

In November 2024, for the second time in a decade, a push to raise the minimum salary threshold (the amount exempt employees must earn to avoid overtime costs to companies) was halted. When discussing affordability and the economy, it is important to note why this topic matters to working families and how keeping it low benefits companies at the expense of everyday people.

Right now, the minimum salary for exempt workers is $684 per week or about $35,568 per year. That’s less than what many states set as a minimum for hourly workers, yet exempt employees often work far more than 40 hours a week. They don’t earn overtime, which means their actual hourly wage can fall well below even the federal minimum.

At its core, the salary threshold was supposed to ensure that professionals (people with critical skills, education, and experience) are paid fairly for the level of work they provide. But the threshold hasn’t kept pace with rising costs. The last meaningful update was in 2004, and even then, it was far behind what families needed to make ends meet.

Why It Matters

With today’s cost of living, two adults earning at the minimum salary threshold would barely cover basic expenses like housing, childcare, and groceries. There’s nothing left for emergencies, savings, or even basics like clothing or medical bills.

Opponents argue that raising the threshold would increase costs for companies and lead to fewer jobs or higher prices. But the reality is, keeping wages this low forces families to rely on debt, public assistance, or work more hours just to survive. All while companies profit from unpaid overtime or low wages. And the data shows that when companies do see higher profits, those dollars do not go back into the hands of the workers, but instead to executives and shareholders.

What Needs to Change

For our economy to be competitive, we need to support working families, not exploit them.

Raising the salary threshold to reflect today’s cost of living is a step toward:

• Ensuring workers are paid fairly for their time.
• Strengthening the middle class, which drives economic growth.
• Reducing reliance on public assistance for families that are already working full-time.

The current system allows employers to benefit from outdated policies while families struggle. It is on us, the people, to advance this issue.

Ask yourself: Why are companies allowed to underpay professionals? Who is advocating to resolve this? Why are we more concerned with reducing profits than supporting our working class?