A federal court in Texas struck down the Department of Labor (DOL) rule that increased the minimum salary for exempt employees under the FLSA.
This decision invalidates that increases mandated July 1, 2024, and blocks the increases slated to go into effect on January 1, 2025. The salary threshold returns to $684 per week (or $35,568 per year), effective immediately.
However, any employers who increased employee salaries based on the new threshold should consult with legal counsel prior to adjusting them back down.
As of November 27, 2024, the DOL has started the appeal process. We will continue to provide updates as they become available.
This article is informational and does not constitute legal or financial advice. Consult with an employment lawyer or accountant for additional clarification on how these changes impact your company.
