Law for New Minimum Wage for
Salaried Exempt Employees Voided.
On November 15, 2024, a federal court in Texas invalidated the Department of Labor’s (DOL) 2024 rule increasing the minimum salary thresholds for exempt employees. The court determined that the DOL had exceeded its regulatory authority, nullifying the changes.
Key impacts of the ruling include:
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The July 1, 2024, salary threshold increases are void.
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The scheduled January 1, 2025, increase will not take effect.
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The automatic salary adjustments previously set to occur every three years have been eliminated.
As a result, the minimum salary levels have reverted to pre-July 1, 2024, standards.
Employers must now ensure the following:
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Most executive, administrative, and professional employees are paid at least $684 per week ($35,568 annually), rather than the $844 per week required under the invalidated rule.
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Employees qualifying under the highly compensated employee exemption must earn a minimum of $107,432 annually, instead of the $132,964 outlined in the overturned rule.
Conceptual HR does NOT advise reversing any salary increases made in 2024.