FLSA Salary Threshold 2025: DOL Reconsiders Overtime Rule

In late April 2025, the U.S. Department of Labor (DOL) asked the Fifth Circuit Court of Appeals to pause its appeal of a Texas federal court decision that blocked the 2024 rule increasing the salary threshold for FLSA-exempt employees. The DOL noted it is reconsidering the regulation—marking the first public indication that the current administration may revise or withdraw the proposed changes.

Background

The 2024 rule would have raised the minimum salary required for overtime exemption under the Fair Labor Standards Act (FLSA) to:

• $43,888/year (July 2024)
• $58,656/year (January 2025)

The rule also included automatic updates every three years. However, a federal judge in Texas struck down the rule in November 2024, stating the DOL exceeded its authority. As a result, the previous threshold of $684/week ($35,568/year) remains in effect. While the Biden-era DOL filed an appeal, the new administration’s April filing signals a likely shift in direction.

What Employers Should Know

• Current salary threshold remains at $684/week for exempt employees.
• The DOL may issue a revised proposal, but no new timeline has been announced.
• Employers who adjusted pay or classifications in anticipation of the 2024 rule may maintain those changes but are not federally required to do so.
• State laws still apply—some states have higher exempt salary thresholds.
• It is advisable to continue monitoring federal updates and prepare for possible changes down the line.

Key Takeaway

The DOL’s decision to pause its appeal suggests a potential policy reset. For now, no action is required from employers beyond maintaining compliance with the current FLSA standards. Any future changes will likely go through a formal rulemaking process, giving employers time to adjust.

✴️Need help with compliance? We can help! Contact CTR Payroll | HR today!