***ALERT***

The planned salary increase for exempt employees, set to take effect on January 1, 2025, has been blocked by a federal court ruling.

In July 2024, the DOL implemented a rule raising salary thresholds for executive, administrative, and professional overtime exemptions under the FLSA. Texas and employer groups sued to invalidate it. On June 28, 2024, Judge Jordan granted Texas a preliminary injunction, finding the DOL likely exceeded its authority. However, since Texas was the only plaintiff requesting the injunction, it did not apply to others, and the July 1, 2024, increase proceeded for all other employers.

However, on November 15, 2024, Judge Sean Jordan struck down the DOL’s rule increasing salary levels for executive, administrative, and professional exemptions. The ruling, effective nationwide, prevents the January 1 increases and restores pre-July 1, 2024 salary levels.

Judge Jordan’s decision may still be appealed by the DOL to the U.S. Fifth Circuit Court of Appeals.