Don’t Mess With Texas – Part II – DOL Salary Rule Nixed
A few months ago, the Federal Court in the Northern District of Texas issued a nationwide injunction on the FTC’s non-compete regulation. Well, the Federal Court in the Eastern District of Texas wanted to step in and play as well. On November 15, 2024, the Court struck down the U.S. Department of Labor’s (DOL) rule that raised the minimum salary required to be paid to most employees classified as exempt from overtime and minimum wage requirements under the Fair Labor Standards Act (FLSA).
By way of background, the DOL’s final rule had raised the salary amount from $684 per week ($35,568 annually) to $844 per week ($43,888 annually) effective on July 1, 2024. A second increase would have raised the salary amount to $1,128 per week ($58,656 annually) on January 1, 2025.
With this ruling, the salary threshold drops back to the prior $35,568 for the executive, administrative and professional employees and $107,432 for the highly compensated employees. In plain English, the threshold for determining if someone is eligible for overtime remains at the lower level, which provides a business owner with more flexibility in labor costs.
Prior to the election, both of these cases would likely be pushed through the appeals process. With the change in administration coming up, it will be interesting to see how aggressive they want to be.
The bottom line…..”Don’t Mess With Texas”
Happy Thanksgiving To Everyone!
Other Items of Interest
- Webinar | Small Business Tax Planning for 2025 – Essential Deductions and Savings Strategies! (12/4 @ 12pm EST)
- December Update from August Wealth – Thanks to Howie Greenberg for sharing
- Updates from Eisner Amper (Thanks to Carey Gertler for sharing)
As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com), Erik Spurlin (espurlin@mpl-law.com), Brad Leber (bleber@mpl-law.com) or anyone in our office with questions or comments.
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