Court vacates salary threshold for exempt status
By: Donald S. Smith – PartnerLast Friday (November 15, 2024), the U.S. District Court for the Eastern District of Texas vacated the Department of Labor’s salary threshold final rule. This is a nationwide ban on the rule for determining exempt status. The salary test for determining whether an employee is “exempt” from the overtime rules immediately reverts to its prior level ($35,568), there will be no mandatory increase on January 1, 2025, and there will be no automatic three year increases. The decision may be appealed but we anticipate an appeal will not be taken because of the impending change in the White House.
A reminder . . . there are three factors for determining whether an employee is “exempt.” The employee must be:
1) paid on a salary basis;
2) performing the duties of an exempt position; and
3) meet the minimum threshold salary (now $35,568).
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Donald S. Smith – Attorney at Law
Donald Smith limits his practice to representing employers and executives in labor and employment matters. He defends employers in cases pending before state and federal courts, the National Labor Relations Board, Equal Employment Opportunity Commission, Indiana Civil Rights Commission, U. S. Dept. of Labor, OSHA, IOSHA, Indiana Dept. of Workforce Development, and Indiana Worker’s Compensation Board. Don advises employers concerning various employment issues such as employee handbooks, employment agreements, severance agreements, covenants not to compete, restrictive covenants, wrongful termination, collective bargaining, labor arbitration, unions, discrimination, harassment, wage and hour matters, unemployment compensation and worker’s compensation.
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Posted: November 19, 2024, by Donald S. Smith