A federal judge has enjoined the Department of Labor’s final rule that increases the minimum salary threshold for the FLSA’s executive, administrative, and professional exemptions from minimum wage and overtime requirements.
Notably, the injunction only applies to Texas government employees- private employers (including private employers in Texas) are still subject to the final rule.
Under the final rule, effective July 1, 2024, the minimum salary threshold under the FLSA’s overtime exemption for executive, administrative, and professional employees is $844 per week ($43,888 per year) and increases on January 1, 2025, to $1,128 per week ($58,656 per year).
As reminders:
- Employers must remain mindful of any applicable salary thresholds for their state’s overtime exemptions. New York, California, and Washington (to name a few) have higher salary exemption thresholds than the federal levels.
- The salary threshold is not the only factor that determines whether an employee is exempt from overtime. The employee must also perform certain exempt duties to be classified as exempt
This is a good time for employers to conduct classification audits to ensure exempt employees are:
- earning the minimum required salary threshold and
- performing exempt duties.