Hot U.S. News - HR | Business
📢 Federal Judge Strikes Down 2024 FLSA Salary Rule, Reverts Threshold to Previous Level 📢
On Friday, November 15, 2024, a federal judge in Texas ruled against the new national Fair Labor Standards Act (FLSA) salary regulation implemented earlier this year by the U.S. Department of Labor (DOL). The regulation was set to increase again on January 1, 2025.
The rule, announced in April 2024, significantly raised the salary threshold for white-collar exemptions from $35,568/year ($684/week) to $43,888/year ($844/week) on July 1, 2024, with a planned increase to $58,656/year ($1,128/week) on January 1, 2025. It also included automatic adjustments every three years to keep pace with inflation.
The November 15, 2024, ruling reverts the salary threshold for white-collar exemptions to $35,568/year ($684/week), effective immediately and nationwide. Employers are no longer obligated to comply with the July 1, 2024, salary increase and are no longer required to implement the January 1, 2025, increase. The salary threshold will also no longer adjust for inflation. The future of the 2024 salary rule remains to be determined.
🌟 Employer Strategies 🌟
🤝 Partner with HR to develop your customized strategy.
🔥Prioritize employee retention and employee satisfaction. Align decisions with talent strategy to help maintain morale and engagement. It’s good for employees, and it’s good for your organization! 🔑
📢 Communicate clearly and openly with employees.
✅ Confirm exemption statuses based on job duties. Note: some states have their own FLSA requirements, which may be more stringent than the federal requirements.
👀 Keep an eye on the ruling, as this could continue to evolve.
🌟 Retaining top-performing team members is crucial for your company's success. By actively reviewing strategies and policies, you can safeguard your organization and foster a positive work environment that motivates your team. For an effective, innovative, and people-focused approach to HR, contact me at rachel@rwgordonconsulting.com for a complimentary consultation. Let's work together to achieve your goals! 🌟
