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Salary threshold. . .$35,568.00. . .the Eastern District of Texas. . .not the classic answers you expect to hear from your loved ones around the Thanksgiving table when you ask, “Hey guys, what are you most thankful for?” While family, friends, food, and a roof over your head are all great, the fact that the United States District Court for the Eastern District of Texas shot down the Department of Labor’s (“DOL”) attempt at increasing the overtime salary threshold to $58,656.00 is right up there for employers.

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The DOL’s Not-So-Final “Final Rule”

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Back on April 23, 2024, the DOL announced their “final rule,” which entailed a multi-phase increase of the “white-collar exemption” (the executive, administrative, and professional employees (“EAP”)) salary threshold from $35,568.00 to $43,888.00, starting on July 1, 2024, and then up to $58,656.00, starting on January 1, 2025 (with increases automatically occurring every three years thereafter). Notably absent were any changes to the DOL’s “duties” test, which must be analyzed in conjunction with a salary when determining whether an EAP employee is exempt from overtime. At the time of its announcement, the DOL projected their final rule would make four million workers newly eligible for overtime payments and cost employers nationwide roughly $1.4 billion in the&nbsp;first year alone. Being thankful for a $35,568.00 threshold is looking more and more understandable now, isn’t it?

To read the full post, please visit our&nbsp;<a href="https://blankromeworkplace.com/2024/11/21/employers-are-extra-grateful-this-thanksgiving-after-federal-court-sets-aside-dols-salary-threshold-increase/">Blank Rome Workplace</a>&nbsp;blog.

Theresa A. Topping

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Employers Are Extra Grateful This Thanksgiving After Federal Court Sets Aside DOL’s Salary Threshold Increase

Employers Are Extra Grateful This Thanksgiving After Federal Court Sets Aside DOL’s Salary Threshold Increase

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Employers Are Extra Grateful This Thanksgiving After Federal Court Sets Aside DOL’s Salary Threshold Increase

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