- On November 18, 2024
The U.S. District Court for the Eastern District of Texas put a halt to the U.S. Department of Labor’s final regulation increasing the salary threshold for the overtime exemption under the Fair Labor Standards Act (FLSA) on a nationwide basis. What does this mean for employers? For now, the increase in the overtime threshold scheduled to become effective on January 1, 2025, will NOT go into effect.
Even so, broker partners want to caution employers with employees in differing states. Alaska, California, Colorado, Maine, New York, and Washington have salary thresholds that exceed the FLSA threshold. As such, employers must be aware of these state-specific regulations before making any changes to any employees’ classification and/or pay.
Employers should be aware of potential changes to this rule and others due to the upcoming changes in the presidential administration.