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
Dec 18, 2025
The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced a significant change to business taxes by making it permanent for businesses to deduct 100% of the cost of certain assets in the year they are purchased. Read through for an introduction to what this means, why it matters and how it works.
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The One Big Beautiful Bill Act, recently signed into law, extends most of the Tax Cuts and Jobs Act’s provisions, adds new tax laws, and ends some tax provisions. The new rules are complex and controversial. Read through to see how they may affect you.
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Company policies, procedures and information offer employees — both new and current — a place to turn when they have questions about company information. Read through to learn how to streamline policies with templates.
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States are shifting the way they enforce labor laws by treating wage theft as a criminal offense rather than a civil infraction. And the penalties can be tough! Read through to see what might be prosecuted as serious theft.
Nov 20, 2025
It's a controversial topic: How much paid time off should you give your employees? Smart companies give more than the minimum, knowing that some employees value time off even more than a salary raise. Read through for some thoughts on a good vacation policy.
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Employee reviews are often seen as monotonous, checklist-based meetings that may or may not end with a raise. Read through for six quick tips to elevate your company's culture through a smarter employee review process.
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