A major change to the Fair Labor Standards Act (FLSA) was issued by a Federal Court in Texas on Friday, November 15, 2024.
Here's what you need to know:
Key Ruling Highlights:
1. The court ruled that the U.S. Department of Labor (DOL) exceeded its authority with new salary thresholds for exempt employees.
2. Effective immediately, the following thresholds are nullified:
• The $844/week threshold implemented on July 1, 2024.
• The $1,128/week threshold scheduled for January 1, 2025, along with all future automatic increases.
3. The previous $684/week threshold is reinstated nationwide.
What This Means for Employers:
• Don’t act hastily. Before adjusting salaries or reclassifying employees, consult with labor and employment counsel.
• State laws still apply. Some states have higher salary thresholds for exempt workers that remain in effect regardless of this ruling.
This decision is likely to be contested further, but for now, compliance requires reverting to the $684/week federal standard unless state-specific laws dictate otherwise.
Stay tuned for updates as this situation develops.
➡️Need help with Compliance? Contact us!
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