On November 15, 2024, a federal court in Texas ruled that the
Department of Labor had overstepped its authority when, in July, it
increased the minimum salary for exempt employees. The July 1, 2024
increase to $844 per week ($43,888 annually) is void and the
additional increase to $1,128 per week ($58,656 annually) that
would have taken effect on January 1, 2025, is void. Finally, the
automatic increases that were scheduled to occur every three years
will not occur.
As a result, the minimums have reverted to pre July 1, 2024
numbers/thresholds. Therefore, most executive, administrative, and
professional employees need to be paid at least $684 per week
($35,568 annually). Employees classified under the highly
compensated employee exemption need to be paid at least $107,432
per year, (as opposed to July 1, 2024 increase to $132,964 and the
scheduled January 1, 2025 increase to $151,164).
