Court Blocks Department of Labor's Proposed Salary Increase

A recent court ruling has halted the Department of Labor's proposed salary threshold increase for Fair Labor Standards Act exemptions.

On November 15, 2024, a Texas federal judge invalidated the plan, which aimed to raise the minimum salary for exempt salaried workers from $35,568 to $58,656 starting January 1, 2025. As a result, the current minimum salary of $35,568 remains in effect.

Employers who have already adjusted salaries in anticipation of the change are advised to maintain their current pay structures but should weigh potential legal and morale implications before making any reversals.

Wendy Sellers, The HR Lady