Federal Court Blocks Salary Threshold Increase for Exempt Employees

The U.S. Department of Labor’s final rule  concerning salary increases for certain exempt employees was blocked by a federal district court in Texas on November 15, 2024. The final rule was announced on April 23, 2024, and increased the minimum salary for exempt executive, administrative, and professional (EAP) employees from $35,568 to $43,888 on July 1, 2024, and would have required an additional increase to $58,656 on January 1, 2025. In addition, the salary increase for highly compensated employees would have required an annual salary increase to $151,164. This means the 2019 rule remains in effect and includes an annual salary of $35,568 or $684 per week for EAP exempt employees, and an annual salary of $107,432 for highly compensated employees.

The DOL filed a notice of appeal in this case on November 26, 2024, but it is unclear whether the incoming presidential administration will continue to defend the rule in court.

If you have additional questions, please contact your CTAS county government consultant.