Nov 18, 2024
The Department of Labor announced in April 2024 that it would increase the salary threshold required to exempt a salaried bona fide executive, administrative or professional employee from federal overtime pay requirements. According to a DOL release, "Effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888 and increase to $58,656 on Jan. 1, 2025." In April, the annual salary threshold was $35,568. The release further stated, "Starting July 1, 2027, salary thresholds will update every three years by applying up-to-date wage data to determine new salary levels."
But that is no longer effective. As the National Law Review reported, "On Nov. 15, 2024, Judge Sean D. Jordan of the United States District Court for the Eastern District of Texas ruled that the DOL exceeded its rulemaking authority by raising the minimum salary for exemption as an executive, administrative, or professional (EAP) employee under the Fair Labor Standards Act."
So, where are we?
The entire DOL rule seems to be gone, including the upcoming January increase and the three-year plan. Especially interesting is that the July raise has also been retroactively rolled back. In theory, employers that granted increases based on that change could now cancel those salary changes. However, such reductions may lead to employee resentment, so they may not be worth any savings.
Also, for many employers the issue may be moot: Some state and local jurisdictions already have higher salary thresholds in place, and this federal ruling has no effect on them.
The ink on the ruling is still wet, and lawyers are currently reviewing the lengthy ruling. We'll have more guidance as it becomes available. For now, the best advice is not to make any changes until you've spoken with qualified advisors.
©2024
Nov 22, 2024
In a recent revenue procedure, the IRS announced changes to health savings accounts for 2025. Now is a good time to look at your situation and consider your options. Click through for a review of the changes.
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Cost-of-living adjustments affect dollar limits for pension and other retirement-related items for tax year 2025—and your contribution to such accounts increases. Click through to see the IRS stipulations regarding specific retirement programs.
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Between changes to current tax law and uncertainty about how a new president will influence future tax law, planning for the 2024 tax season is challenging. Click through for tips on staying on top of current and proposed tax legislation.
Oct 24, 2024
As an employer, you should be familiar with which employees are eligible for continuation of health insurance benefits under federal law and what events trigger that coverage. You should also know what kinds of communications are required and when. Read through to learn more.
Oct 23, 2024
The rules on deducting meals have changed over the years, leaving many to wonder what the current situation is. What kinds of deductions are available, and when? Read through for the latest guidance.
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