Stating the Department of Labor (DOL) overstepped its authority, a federal Texas judge struck down the minimum salary requirement implemented July 1, 2024, for exempt executive, administrative and professional employees under the Fair Labor Standards Act. The ruling vacates the July 1, January 1, and future planned increases to the salary threshold, returning the exempt salary threshold to $35,568.
The minimum annual salary requirement in July jumped from $35,568 to $43,888. In January, the increase would have hiked salaries to $58,656 to maintain exemption status. DOL-required increases for highly compensated employees (HCEs) also were sidelined, resetting the threshold to the pre-July salary of $107,432.
Legally, organizations could eliminate the July 1 salary increases, but such a move would likely trigger employee relations issues for those impacted.
With a new Trump nominee expected to be named within the DOL, it’s unclear if efforts will be made to reinstate or revise the expanded overtime rule.
For additional information, contact Bukaty’s HR Consulting concierge desk.
