Making it official.
Tomorrow the Wage and Hour Division of the U.S. Department of Labor will publish a technical regulatory amendment to rescind a Biden-era rule on the white-collar exemptions from the minimum wage and overtime requirements of the Fair Labor Standards Act.
The Biden rule, which had been vacated by two federal courts, would have substantially increased the minimum salaries required to qualify for the exemptions. The U.S. Court of Appeals for the Fifth Circuit recently dismissed the appeals of those court decisions.
The effect of the court rulings was to default to regulations that had been in place as of June 30, 2024 – the day before the Biden rule took effect. In other words, tomorrow’s action will “clean up” the Code of Federal Regulations to prevent confusion.
If the Biden rule had not been vacated, the minimum annual salary under the FLSA’s white-collar exemptions would have been increased from $35,568 to $43,888 on July 1, 2024, followed by another increase to $58,656 on January 1, 2025. The $35,568 standard ($684 a week) was put into place in 2019 during the first Trump Administration.
It is not clear whether or when the DOL might undertake a new rulemaking proceeding relating to salary minimums or any other criteria for determining qualification for the exemptions.
- Partner
With 44 years of experience, Jim brings deep knowledge of the Fair Labor Standards Act (FLSA) and state wage and hour laws, and he serves as Chair of the firm’s Wage and Hour Practice Group. He is particularly experienced in ...
This is Constangy’s flagship law blog, founded in 2010 by Robin Shea, who is chief legal editor and a regular contributor. This nationally recognized blog also features posts from other Constangy attorneys in the areas of immigration, labor relations, and sports law, keeping HR professionals and employers informed about the latest legal trends.
