On Friday, a Texas Federal Court blocked the DOL from raising the minimum salary threshold required for executive, administrative and professional (“EAP”) employees to be exempt from minimum wage and overtime pay. This means that as of now, these changes will not go into effect on January 1, 2025. The decision, in Plano Chamber of Commerce, et al., v. U.S. Department of Labor, et al., also invalidated the increase that went into effect on July 1, 2024.
At this time, the minimum salary for the executive, administrative and professional exemption under Federal law is $684 per week. Please note that receiving a salary of at least $684 per week does not itself render an employee “exempt” – they must also satisfy one of the duties tests to be exempt. In addition, states such as New York and California have higher salary minimum’s than that required under Federal law.
The DOL stated that it is currently evaluating next steps. We will continue to closely monitor these developments. In the meantime, employers should ensure their employees maintain accurate overtime classification.