Department of Labor Salary Thresholds Revert to Pre-July 2024 Levels
11.27.24
On November 15, 2024, the U.S. District Court for the Eastern District of Texas invalidated the Department of Labor’s (DOL) 2024 updates to the Fair Labor Standards Act (FLSA) overtime rules. The court’s ruling requires the DOL to revert the salary thresholds for executive, administrative and professional (EAP) employees to pre-July 2024 levels.
Key Takeaways:
• Salary Threshold Changes Blocked: The court ruled that the increased salary threshold for EAP-exempt employees, which took effect in July 2024 and was set to rise again in January 2025, is unlawful. The pre-July 2024 limits are now reinstated.
o Before July 2024: $684/week or $35,568 per year.
o July 2024: $844/week or $43,888 per year.
o January 2025: $1,128 per week or $58,656 per year.
o January 2025: $1,128 per week or $58,656 per year.
• Automatic Updates Prohibited: The DOL’s plan to automatically adjust salary thresholds every three years without notice-and-comment rulemaking was found to violate the Administrative Procedure Act (APA).
For now, businesses are no longer required to adjust employee classifications based on the vacated rules. The previous salary threshold of $684 per week ($35,568 annually) remains in effect. The DOL may appeal this decision or issue revised regulations.
If you need assistance reviewing this ruling’s impact on your business or navigating your options, please contact Amy M. Gibson or the Aronberg Goldgehn attorney with whom you normally work.
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