HCE

DOL’s 2024 Rule Increasing Salary Thresholds for Overtime Exemptions Struck Down.

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On November 15, 2024, a Texas federal district court vacated an April 2024 final rule issued by the U.S. Department of Labor (DOL), which had increased the salary thresholds for exemptions from federal overtime requirements under the Fair Labor Standards Act (FLSA). Significantly, the court’s ruling struck down the DOL’s rule on a nationwide basis. On November 26, 2024, the DOL filed a notice of appeal of the court’s decision. For now, however, the DOL’s April 2024 rule does not apply. Notably, it is uncertain whether the incoming administration will even continue moving forward with the DOL’s appeal. As a …

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DOL Issues Final Rule Increasing Salary Thresholds for FLSA Exemptions

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On April 23, 2024, the U.S. Department of Labor (DOL) released its anticipated final rule impacting annual salary-level thresholds for exemptions to overtime requirements pursuant to the Fair Labor Standards Act (FLSA). In addition to increasing applicable earnings thresholds, the final rule also introduces a mechanism for automatically updating those thresholds on a going forward basis every three years. Presently, the salary threshold under the FLSA for executive, administrative, and professional employees is $684 per week, which annualizes to $35,568 per year. The threshold for highly compensated employees under the FLSA is currently $107,432 per year. Effective July 1, 2024, …

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