On November 15, the U.S. District Court in Texas struck down the U.S. Department of Labor’s (U.S. DOL) ruling regarding the salary threshold for exempt employees. The salary threshold increase, which was scheduled to take effect on 1/1/25, will no longer be put in place. In addition, the Court rescinded the increase that previously went into effect on 7/1/24. The Court ruled that the DOL had exceeded its statutory authority by raising the salary level so high. The DOL may appeal the Court’s decision, but as of now, the current threshold for the annual salary basis requirement for exempt status under the FLSA, will revert to $35,568. We understand the challenges and questions the ruling has created for employers in recent months. Please contact us at chrsusers@millercooper.com if our Client HR Services can be of assistance.
