On Nov. 15, 2024, the Federal District Court for the Eastern District of Texas struck down the U.S. Department of Labor’s (DOL) 2024 regulation, which would have significantly increased the minimum salary required for certain employees to be exempt from overtime pay under the Fair Labor Standards Act (FLSA). This nationwide ruling means that the minimum salary requirements will stay at the levels set by the 2019 rule: $684 per week, or $35,568 annually.
What happened?
Earlier this year, the DOL announced new rules that increased the minimum salary required for certain employees to be exempt from overtime pay. The new rules increased the minimum salary to $43,888 starting on July 1, 2024, and would have increased the minimum salary again on Jan. 1, 2025, to $58,656.
However, the federal court blocked these changes nationwide, reversing the increase that occurred on July 1, 2024, and preventing the Jan. 1, 2025 increase from going into effect.
What does this mean for counties?
For now, counties and other employers can continue to follow the 2019 salary rules, which set the minimum salary for exempt employees at $684 per week ($35,568 per year).
This decision removes the immediate pressure to increase salaries or reclassify employees. However, counties should be aware that the DOL could appeal the ruling and/or future administrations may revisit efforts to raise salary thresholds.
Looking ahead
Counties should stay alert for future changes. Monitoring updates and planning ahead will ensure compliance with any new rules down the road.
