Salary Threshold Increase No Longer In Effect
Today, the U.S. District Court in the Eastern District of Texas struck down the Department of Labor's rule increasing the salary threshold for Executive, Administrative and Professional (EAP) exemptions. This means the planned increase for January 1, 2025 to $58,656 a year ($1,128/week) as the salary threshold is no longer in effect.
The court's ruling also struck down the other components of the DOL rule, including the July 1, 2024 increase to $43,888 ($844/week) and the proposed automatic increases every three years.
For those who already increased or adjusted pay for employees impacted by the 7/1/24 changes, don't immediately change back to the old compensation levels. However, you should evaluate how you want to move forward given the salary threshold for EAP exemptions has returned to $684 per week or $35,568 per year.
The Biden Administration's DOL may appeal the ruling or may leave it to the incoming Trump Administration. Stay tuned for more info, and please reach out with questions.
Review the case here:
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