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ARTICLE · 19 DECEMBER 2024

Salary Threshold Increase For Exempt Employees Blocked

Much Shelist, P.C.
Much Shelist, P.C.
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Much Shelist, P.C.

Much Shelist, P.C.

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A federal district court in Texas has blocked a U.S. Department of Labor (DOL) final rule that would have increased the salary thresholds for certain exempt employees on January 1, 2025.

United StatesEmployment and HR
Charlotte F. Franklin
Charlotte F. Franklin
Matthew Feery
Matthew Feery

A federal district court in Texas has blocked a U.S. Department of Labor (DOL) final rule that would have increased the salary thresholds for certain exempt employees on January 1, 2025. As a result, the rule —and its accompanying threshold increases — will no longer go into effect, and the salary threshold increase that took effect on July 1, 2024, has been undone. For employers already dealing with a host of new laws taking effect in 2025, the decision may bring some relief, along with uncertainty of what to do with the changes they may have already made.

How We Got Here

As we previously wrote, in April 2024, the DOL issued a final rule increasing the salary thresholds for executive, administrative, and professional exempt employees under the Fair Labor Standards Act (FLSA). The rule implemented the salary threshold increases in phases. The first increase, which previously took effect on July 1, 2024, raised the salary threshold for these exempt employees from

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