Today, in a highly anticipated decision, a Texas federal district court judge struck down the U.S. Department of Labor’s final regulation that increased the salary threshold for the “white collar” exemptions under the Fair Labor Standards Act (FLSA). The next salary threshold increase under the rule was scheduled to take effect on January 1, 2025.
After much anticipation, the U.S. Department of Labor (DOL) unveiled its Final Rule on April 23, 2024, increasing the salary that an employee must earn in order to qualify for the executive, administrative, professional and highly compensated employee “white collar” exemptions under the Fair Labor Standards Act (FLSA). Although the Final Rule will almost certainly face legal challenges and could be struck down, employers should still take the opportunity to evaluate and audit their employee exemption classifications in the event the new rule takes hold in July.Continue Reading DOL’s Final Rule to Increase Salary Thresholds for Overtime Exemptions