On April 23, 2024, the U.S. DOL announced a final rule in which the salary threshold for the executive, administrative, and professional (EAP) overtime exemptions increased on July 1, 2024, to $844 per week ($43,888 annually). The salary threshold was set to increase again on January 1, 2025 to $1,128 per week ($58,656 annually).

Today, a federal district court in Texas issued a decision striking down the July 1, 2024 and January 1, 2025 salary threshold increases in their entirety, and on a nationwide basis. That means the federal salary threshold reverts to $684 per week ($35,568 annually), a number that the 5th Circuit Court of Appeals recently approved.

To the extent that employers were planning to increase an employee’s salary or convert an employee to non-exempt/hourly as a result of the planned increase to the federal salary threshold on January 1, 2025, such action does not currently need to occur. Employers should remain mindful of any states that have salary thresholds that exceed the FLSA threshold.

The DOL may appeal today’s decision, and we will continue to monitor developments.

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Photo of Patricia E. Simon Patricia E. Simon

As a labor and employment law litigator in state and federal courts, Patty has obtained favorable results for clients ranging from administrative matters to the defense of single and multiple plaintiff litigation.  You’ll regularly find her providing representation before administrative agencies across the…

As a labor and employment law litigator in state and federal courts, Patty has obtained favorable results for clients ranging from administrative matters to the defense of single and multiple plaintiff litigation.  You’ll regularly find her providing representation before administrative agencies across the country, defending claims filed by current and former employees.  Patty also advises clients on a daily basis regarding employment issues such as handbooks, policies and procedures, restrictive covenants, Federal & State discrimination laws, as well as the defense of claims involving wage and hour laws, wrongful discharge, discipline and discharge, and employment contracts.

Originally from Philadelphia but raised in Atlanta, Patty is one of the founding partners of MHS.  She currently hosts seminars and trainings to both current and prospective clients on a broad range of topics related to labor and employment law, including state and federal discrimination and harassment laws and wage and hour laws.

Photo of W. Brian Holladay W. Brian Holladay

Brian represents employers in all areas of labor and employment law. As co-chair of the Firm’s National Compliance team, he frequently advises employers on compliance with national, state, and local legal requirements. Brian’s areas of expertise include guiding employers through the disciplinary and…

Brian represents employers in all areas of labor and employment law. As co-chair of the Firm’s National Compliance team, he frequently advises employers on compliance with national, state, and local legal requirements. Brian’s areas of expertise include guiding employers through the disciplinary and termination process, leave and other accommodation requests, pay equity and transparency laws, and fair workweek legislation. Brian drafts employee handbooks and other policies, employment agreements, and restrictive covenants (such as non-compete, non-solicit, and confidentiality agreements).

Brian also defends employers in courts and administrative agencies across the country. Clients rely on Brian for the defense of employment-related claims such as Title VII, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Fair Labor Standards Act, and the National Labor Relations Act. Likewise, Brian assists with high-stakes government audits and investigations, including matters before the EEOC, DOL Wage and Hour Division, OFCCP, and OSHA.

Brian has earned a reputation for his expertise in issues related to the use of staffing agencies, including contracting issues, managing co-employment risk, and defending claims filed by staffing agency employees. He also litigates business torts and contract disputes.

Brian grew up in Knoxville, Tennessee. He received his bachelor’s degree, magna cum laude, from Furman University, where he was captain of the Track and Field team.  Prior to joining the firm, Brian served as a law clerk to the Honorable Gerrilyn G. Brill of the United States District Court for the Northern District of Georgia.

Brian earned his J.D., magna cum laude, from Duke University School of Law. He is now a Senior Lecturing Fellow at Duke University School of Law. He teaches a course called A Practitioner’s Guide to Employment Law.

In his free time, Brian enjoys coaching his children’s youth sports teams.