By attorneys Emily Ellingson and Rebecca Reif
After the U.S. Department of Labor issued new final regulations under the Fair Labor Standards Act (FLSA) in April of 2024, employers conducted classification and pay reviews for their workforces to come into compliance and meet the increased salary thresholds. Click here for the Ahlers’ summary of the major changes in these FLSA regulations which went into effect on July 1, 2024.
On November 15, 2024, a judge in the Eastern District of Texas issued a ruling which vacates these final FLSA regulations nationwide. This decision applies to the entirety of the July 1, 2024 final regulations. While the U. S. Department of Labor has the option to appeal this decision, it is expected not to do so due to the outcome of November’s Presidential election.
This means that a scheduled increase to salary thresholds for the “executive, administrative, and professional” (EAP) and “highly compensated” exemptions for January 1, 2025 has been halted. It also means that the increase to these salary thresholds which took place on July 1, 2024 is no longer in effect. The salary threshold for EAP employees set prior to the new rules (which is $684 per week, or $35,568 annualized) will be the applicable salary threshold once more.
If you have questions about what this means for your workforce, or any changes already made to pay levels or FLSA classifications, contact your Ahlers Employment Law counsel.
About Ahlers & Cooney's Client Alerts
Our Client Alerts are intended to provide occasional general comments on new developments in Federal and State law and regulations which we believe might be of interest to our clients. The Client Alerts should not be considered opinions of Ahlers & Cooney, P.C., and are not intended to provide legal advice as a substitute for seeking professional counsel. Readers should not under any circumstance act upon the information in this publication without seeking specific professional counsel. Ahlers & Cooney will be pleased to provide additional details regarding any article upon request. Additional copies of this Client Alert may be obtained by contacting any attorney in the Firm or by visiting the Firm's website at www.ahlerslaw.com.
©2024 Ahlers & Cooney, P.C. All Rights Reserved.
NOTICE TO THE PUBLIC The determination of the need for legal services and the choice of a lawyer are extremely important decisions and should not be based solely upon advertisements or self-proclaimed expertise. This disclosure is required by rule of the Supreme Court of Iowa. Memberships and offices in legal fraternities and legal societies, technical and professional licenses, and memberships in scientific, technical and professional associations and societies of law or field of practice does not mean that a lawyer is a specialist or expert in a field of law, nor does it mean that such lawyer is necessarily any more expert or competent than any other lawyer. All potential clients are urged to make their own independent investigation and evaluation of any lawyer being considered. This notice is required by rule of the Supreme Court of Iowa.