On April 23, 2024, the U.S. DOL announced a final rule in which the salary threshold for the executive, administrative, and professional (EAP) overtime exemptions increased on July 1, 2024, to $844 per week ($43,888 annually). The salary threshold was set to increase again on January 1, 2025 to $1,128 per week ($58,656 annually).
Today, a federal district court in Texas issued a decision striking down the July 1, 2024 and January 1, 2025 salary threshold increases in their entirety, and on a nationwide basis. That means the federal salary threshold reverts to $684 per week ($35,568 annually), a number that the 5th Circuit Court of Appeals recently approved.
To the extent that employers were planning to increase an employee’s salary or convert an employee to non-exempt/hourly as a result of the planned increase to the federal salary threshold on January 1, 2025, such action does not currently need to occur. Employers should remain mindful of any states that have salary thresholds that exceed the FLSA threshold.
The DOL may appeal today’s decision, and we will continue to monitor developments.