As you know, on April 23, 2024, the U.S. Department of Labor announced a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees , which updated and revised the regulations issued under section 13(a)(1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional (EAP) employees. The rule had raised the minimum salary level on July 1, 2024, to the equivalent of $43,888 per year, and it was set to increase to $58,656 per year on January 1, 2025.
Now, however, the U.S. District Court for the Eastern District of Texas has invalidated the rule, finding that the DOL exceeded its statutory jurisdiction in promulgating the rule. As a result, the salary threshold for exempt status will revert back to the previous threshold, i.e., $684 per week (or $35,568 annually).
It is unclear at this time whether the DOL will seek to appeal the ruling. We will continue providing you updates on this important issue as they occur.
