Update to our original post-

On November 14, 2024, the U.S. District Court for the Eastern District of Texas overturned the U.S. Department of Labor’s (DOL) regulation that aimed to increase the required salary threshold for exempt executive, administrative or professional employees eligible for overtime pay.

As a result, the salary threshold returns to $684/week or $35,558/year.

For Highly Compensated Employees, the total annual compensation reverts to $107,432/year, which includes at least $684/week paid on a salary or fee basis.

Additionally, the provision mandating automatic three-year adjustments to the salary threshold will not be implemented.

As an employer, you can decide whether to roll back compensation and changes implemented because of the July 2024 threshold increase. Before rolling back compensation, employers should seek legal counsel. While Louisiana does not require an advance notice of wage changes, it is considered good practice to notify employees of changes to avoid confusion and ensure compliance.

_____________________________________________________________________________________________________________________________________________________________________________

‍

Change is a coming for the Minimum Salary Threshold for Overtime Eligibility.

The Department of Labor announced that starting July 1, 2024, employers will have a higher salary threshold to consider an employee exempt from the Fair Labor Standards Act (FLSA) over time rule.  

The current salary threshold is $684 per week or $35,568 annually.  On July 1^st this will increase to $844 per week or $43,888 annually, and to $1,128 per week or $58,656 annually on January 1, 2025.

Also going into effect on July 1, 2024, is the minimum salary threshold to qualify for the highly compensated employee exemption which will increase to$132,964 per year, and then increase again to $151,164 on January 1, 2025.

So what should you do?  July 1^st will be here before you know it.  Take a look at a salary report of your existing employees, and determine if you will have any employees that will be effected by the change both on July 1^st or on January 1st.  

‍