Filter By Service Area
Filter By Title
Filter By Office

Resources

Despite Supreme Court's Reduction in Agency Authority, Federal Appeals Court Over Louisiana Upholds DOL's Authority to Regulate Salary Threshold for FLSA Exemptions

Earlier this year, the U.S. Supreme Court overruled longstanding U.S. Supreme Court caselaw that required courts to give special deference to federal agencies’ interpretations of laws when Congress did not address the issue in the law itself. In its decision, the U.S. Supreme Court held that it is not agencies, but instead Congress and, in its absence, the courts, who are responsible for interpreting statutes on specific issues.

Businesses Face Uncertainty Regarding How to Rely on Agency Guidance, Including DOL Wage and Hour Guidance

Agencies, courts, and businesses, used to relying on the interpretations of federal agencies regarding certain laws, are still uncertain about how to proceed with this Supreme Court decision. One example of an agency grappling with this decision is the Department of Labor, responsible for enforcing the Federal Wage and Hour Laws.

Fifth Circuit Upholds DOL’s Authority to Determine Salary Threshold

A September 11, 2024, U.S. Fifth Circuit Court of Appeals decision, the federal appeals court over Texas, Louisiana, and Mississippi, upheld a DOL interpretation of the Federal Wage and Hour law, despite the Supreme Court’s recent decision limiting federal agency authority. A fast-food operator based out of Texas sued the Department of Labor over its 2019 rule to increase the salary threshold to $35,568 for certain exemptions to the federal overtime rules, arguing that the rule was beyond DOL’s authority.

The Federal Appeals Court held that this rule was within the DOL’s authority because the DOL has explicit statutory authority to “define and delimit” the terms of the exemptions to the Federal Wage and Hour law.

Why this Matters? This Decision Supports the DOL’s 2024 Rule Substantially Increasing the Salary Threshold

In 2024, the DOL substantially increased the salary threshold required for an employee to be exempt from overtime requirements. The current threshold, effective July 1, 2024, is $43,888 per year. That means that as of today, employees must be earning a salary of at least $43,888 to be properly classified as exempt. However, this threshold will not last long, as another substantial increase takes effect January 1, 2025, raising the threshold to $58,656 per year.

Currently, this 2024 DOL rule is facing several legal challenges in courts, but the DOL rule is still in effect. It is almost certain that the DOL will rely heavily on the Federal Appeal Court’s recent decision upholding its 2019 salary threshold increase to support its 2024 salary threshold increase.

What Should Employers Do Now?

Employers need to analyze all of the employees that are currently categorized as exempt and determine whether they are still properly exempt. For “exempt” employees earning less than $43,888, employers must act immediately to address this issue or face legal exposure for misclassifying their employees as exempt. For those exempt employees earning less than $56,656, employers need to create a plan to either ensure that they are properly classified as exempt come January 1, 2025, or convert these employees to hourly.

Responding to this increase in the salary threshold is a complicated process that must be carefully reviewed with the help of legal counsel to ensure it is done correctly to reduce legal exposure to claims, charges, and lawsuits.

Despite Supreme Court's Reduction in Agency Authority, Federal Appeals Court Over Louisiana Upholds DOL's Authority to Regulate Salary Threshold for FLSA Exemptions

Earlier this year, the U.S. Supreme Court overruled longstanding U.S. Supreme Court caselaw that required courts to give special deference to federal agencies’ interpretations of laws when Congress did not address the issue in the law itself. In its decision, the U.S. Supreme Court held that it is not agencies, but instead Congress and, in its absence, the courts, who are responsible for interpreting statutes on specific issues.

Businesses Face Uncertainty Regarding How to Rely on Agency Guidance, Including DOL Wage and Hour Guidance

Agencies, courts, and businesses, used to relying on the interpretations of federal agencies regarding certain laws, are still uncertain about how to proceed with this Supreme Court decision. One example of an agency grappling with this decision is the Department of Labor, responsible for enforcing the Federal Wage and Hour Laws.

Fifth Circuit Upholds DOL’s Authority to Determine Salary Threshold

A September 11, 2024, U.S. Fifth Circuit Court of Appeals decision, the federal appeals court over Texas, Louisiana, and Mississippi, upheld a DOL interpretation of the Federal Wage and Hour law, despite the Supreme Court’s recent decision limiting federal agency authority. A fast-food operator based out of Texas sued the Department of Labor over its 2019 rule to increase the salary threshold to $35,568 for certain exemptions to the federal overtime rules, arguing that the rule was beyond DOL’s authority.

The Federal Appeals Court held that this rule was within the DOL’s authority because the DOL has explicit statutory authority to “define and delimit” the terms of the exemptions to the Federal Wage and Hour law.

Why this Matters? This Decision Supports the DOL’s 2024 Rule Substantially Increasing the Salary Threshold

In 2024, the DOL substantially increased the salary threshold required for an employee to be exempt from overtime requirements. The current threshold, effective July 1, 2024, is $43,888 per year. That means that as of today, employees must be earning a salary of at least $43,888 to be properly classified as exempt. However, this threshold will not last long, as another substantial increase takes effect January 1, 2025, raising the threshold to $58,656 per year.

Currently, this 2024 DOL rule is facing several legal challenges in courts, but the DOL rule is still in effect. It is almost certain that the DOL will rely heavily on the Federal Appeal Court’s recent decision upholding its 2019 salary threshold increase to support its 2024 salary threshold increase.

What Should Employers Do Now?

Employers need to analyze all of the employees that are currently categorized as exempt and determine whether they are still properly exempt. For “exempt” employees earning less than $43,888, employers must act immediately to address this issue or face legal exposure for misclassifying their employees as exempt. For those exempt employees earning less than $56,656, employers need to create a plan to either ensure that they are properly classified as exempt come January 1, 2025, or convert these employees to hourly.

Responding to this increase in the salary threshold is a complicated process that must be carefully reviewed with the help of legal counsel to ensure it is done correctly to reduce legal exposure to claims, charges, and lawsuits.

Despite Supreme Court's Reduction in Agency Authority, Federal Appeals Court Over Louisiana Upholds DOL's Authority to Regulate Salary Threshold for FLSA Exemptions

Earlier this year, the U.S. Supreme Court overruled longstanding U.S. Supreme Court caselaw that required courts to give special deference to federal agencies’ interpretations of laws when Congress did not address the issue in the law itself. In its decision, the U.S. Supreme Court held that it is not agencies, but instead Congress and, in its absence, the courts, who are responsible for interpreting statutes on specific issues.

Businesses Face Uncertainty Regarding How to Rely on Agency Guidance, Including DOL Wage and Hour Guidance

Agencies, courts, and businesses, used to relying on the interpretations of federal agencies regarding certain laws, are still uncertain about how to proceed with this Supreme Court decision. One example of an agency grappling with this decision is the Department of Labor, responsible for enforcing the Federal Wage and Hour Laws.

Fifth Circuit Upholds DOL’s Authority to Determine Salary Threshold

A September 11, 2024, U.S. Fifth Circuit Court of Appeals decision, the federal appeals court over Texas, Louisiana, and Mississippi, upheld a DOL interpretation of the Federal Wage and Hour law, despite the Supreme Court’s recent decision limiting federal agency authority. A fast-food operator based out of Texas sued the Department of Labor over its 2019 rule to increase the salary threshold to $35,568 for certain exemptions to the federal overtime rules, arguing that the rule was beyond DOL’s authority.

The Federal Appeals Court held that this rule was within the DOL’s authority because the DOL has explicit statutory authority to “define and delimit” the terms of the exemptions to the Federal Wage and Hour law.

Why this Matters? This Decision Supports the DOL’s 2024 Rule Substantially Increasing the Salary Threshold

In 2024, the DOL substantially increased the salary threshold required for an employee to be exempt from overtime requirements. The current threshold, effective July 1, 2024, is $43,888 per year. That means that as of today, employees must be earning a salary of at least $43,888 to be properly classified as exempt. However, this threshold will not last long, as another substantial increase takes effect January 1, 2025, raising the threshold to $58,656 per year.

Currently, this 2024 DOL rule is facing several legal challenges in courts, but the DOL rule is still in effect. It is almost certain that the DOL will rely heavily on the Federal Appeal Court’s recent decision upholding its 2019 salary threshold increase to support its 2024 salary threshold increase.

What Should Employers Do Now?

Employers need to analyze all of the employees that are currently categorized as exempt and determine whether they are still properly exempt. For “exempt” employees earning less than $43,888, employers must act immediately to address this issue or face legal exposure for misclassifying their employees as exempt. For those exempt employees earning less than $56,656, employers need to create a plan to either ensure that they are properly classified as exempt come January 1, 2025, or convert these employees to hourly.

Responding to this increase in the salary threshold is a complicated process that must be carefully reviewed with the help of legal counsel to ensure it is done correctly to reduce legal exposure to claims, charges, and lawsuits.

Despite Supreme Court's Reduction in Agency Authority, Federal Appeals Court Over Louisiana Upholds DOL's Authority to Regulate Salary Threshold for FLSA Exemptions

Earlier this year, the U.S. Supreme Court overruled longstanding U.S. Supreme Court caselaw that required courts to give special deference to federal agencies’ interpretations of laws when Congress did not address the issue in the law itself. In its decision, the U.S. Supreme Court held that it is not agencies, but instead Congress and, in its absence, the courts, who are responsible for interpreting statutes on specific issues.

Businesses Face Uncertainty Regarding How to Rely on Agency Guidance, Including DOL Wage and Hour Guidance

Agencies, courts, and businesses, used to relying on the interpretations of federal agencies regarding certain laws, are still uncertain about how to proceed with this Supreme Court decision. One example of an agency grappling with this decision is the Department of Labor, responsible for enforcing the Federal Wage and Hour Laws.

Fifth Circuit Upholds DOL’s Authority to Determine Salary Threshold

A September 11, 2024, U.S. Fifth Circuit Court of Appeals decision, the federal appeals court over Texas, Louisiana, and Mississippi, upheld a DOL interpretation of the Federal Wage and Hour law, despite the Supreme Court’s recent decision limiting federal agency authority. A fast-food operator based out of Texas sued the Department of Labor over its 2019 rule to increase the salary threshold to $35,568 for certain exemptions to the federal overtime rules, arguing that the rule was beyond DOL’s authority.

The Federal Appeals Court held that this rule was within the DOL’s authority because the DOL has explicit statutory authority to “define and delimit” the terms of the exemptions to the Federal Wage and Hour law.

Why this Matters? This Decision Supports the DOL’s 2024 Rule Substantially Increasing the Salary Threshold

In 2024, the DOL substantially increased the salary threshold required for an employee to be exempt from overtime requirements. The current threshold, effective July 1, 2024, is $43,888 per year. That means that as of today, employees must be earning a salary of at least $43,888 to be properly classified as exempt. However, this threshold will not last long, as another substantial increase takes effect January 1, 2025, raising the threshold to $58,656 per year.

Currently, this 2024 DOL rule is facing several legal challenges in courts, but the DOL rule is still in effect. It is almost certain that the DOL will rely heavily on the Federal Appeal Court’s recent decision upholding its 2019 salary threshold increase to support its 2024 salary threshold increase.

What Should Employers Do Now?

Employers need to analyze all of the employees that are currently categorized as exempt and determine whether they are still properly exempt. For “exempt” employees earning less than $43,888, employers must act immediately to address this issue or face legal exposure for misclassifying their employees as exempt. For those exempt employees earning less than $56,656, employers need to create a plan to either ensure that they are properly classified as exempt come January 1, 2025, or convert these employees to hourly.

Responding to this increase in the salary threshold is a complicated process that must be carefully reviewed with the help of legal counsel to ensure it is done correctly to reduce legal exposure to claims, charges, and lawsuits.

Despite Supreme Court's Reduction in Agency Authority, Federal Appeals Court Over Louisiana Upholds DOL's Authority to Regulate Salary Threshold for FLSA Exemptions

Earlier this year, the U.S. Supreme Court overruled longstanding U.S. Supreme Court caselaw that required courts to give special deference to federal agencies’ interpretations of laws when Congress did not address the issue in the law itself. In its decision, the U.S. Supreme Court held that it is not agencies, but instead Congress and, in its absence, the courts, who are responsible for interpreting statutes on specific issues.

Businesses Face Uncertainty Regarding How to Rely on Agency Guidance, Including DOL Wage and Hour Guidance

Agencies, courts, and businesses, used to relying on the interpretations of federal agencies regarding certain laws, are still uncertain about how to proceed with this Supreme Court decision. One example of an agency grappling with this decision is the Department of Labor, responsible for enforcing the Federal Wage and Hour Laws.

Fifth Circuit Upholds DOL’s Authority to Determine Salary Threshold

A September 11, 2024, U.S. Fifth Circuit Court of Appeals decision, the federal appeals court over Texas, Louisiana, and Mississippi, upheld a DOL interpretation of the Federal Wage and Hour law, despite the Supreme Court’s recent decision limiting federal agency authority. A fast-food operator based out of Texas sued the Department of Labor over its 2019 rule to increase the salary threshold to $35,568 for certain exemptions to the federal overtime rules, arguing that the rule was beyond DOL’s authority.

The Federal Appeals Court held that this rule was within the DOL’s authority because the DOL has explicit statutory authority to “define and delimit” the terms of the exemptions to the Federal Wage and Hour law.

Why this Matters? This Decision Supports the DOL’s 2024 Rule Substantially Increasing the Salary Threshold

In 2024, the DOL substantially increased the salary threshold required for an employee to be exempt from overtime requirements. The current threshold, effective July 1, 2024, is $43,888 per year. That means that as of today, employees must be earning a salary of at least $43,888 to be properly classified as exempt. However, this threshold will not last long, as another substantial increase takes effect January 1, 2025, raising the threshold to $58,656 per year.

Currently, this 2024 DOL rule is facing several legal challenges in courts, but the DOL rule is still in effect. It is almost certain that the DOL will rely heavily on the Federal Appeal Court’s recent decision upholding its 2019 salary threshold increase to support its 2024 salary threshold increase.

What Should Employers Do Now?

Employers need to analyze all of the employees that are currently categorized as exempt and determine whether they are still properly exempt. For “exempt” employees earning less than $43,888, employers must act immediately to address this issue or face legal exposure for misclassifying their employees as exempt. For those exempt employees earning less than $56,656, employers need to create a plan to either ensure that they are properly classified as exempt come January 1, 2025, or convert these employees to hourly.

Responding to this increase in the salary threshold is a complicated process that must be carefully reviewed with the help of legal counsel to ensure it is done correctly to reduce legal exposure to claims, charges, and lawsuits.

Despite Supreme Court's Reduction in Agency Authority, Federal Appeals Court Over Louisiana Upholds DOL's Authority to Regulate Salary Threshold for FLSA Exemptions

Earlier this year, the U.S. Supreme Court overruled longstanding U.S. Supreme Court caselaw that required courts to give special deference to federal agencies’ interpretations of laws when Congress did not address the issue in the law itself. In its decision, the U.S. Supreme Court held that it is not agencies, but instead Congress and, in its absence, the courts, who are responsible for interpreting statutes on specific issues.

Businesses Face Uncertainty Regarding How to Rely on Agency Guidance, Including DOL Wage and Hour Guidance

Agencies, courts, and businesses, used to relying on the interpretations of federal agencies regarding certain laws, are still uncertain about how to proceed with this Supreme Court decision. One example of an agency grappling with this decision is the Department of Labor, responsible for enforcing the Federal Wage and Hour Laws.

Fifth Circuit Upholds DOL’s Authority to Determine Salary Threshold

A September 11, 2024, U.S. Fifth Circuit Court of Appeals decision, the federal appeals court over Texas, Louisiana, and Mississippi, upheld a DOL interpretation of the Federal Wage and Hour law, despite the Supreme Court’s recent decision limiting federal agency authority. A fast-food operator based out of Texas sued the Department of Labor over its 2019 rule to increase the salary threshold to $35,568 for certain exemptions to the federal overtime rules, arguing that the rule was beyond DOL’s authority.

The Federal Appeals Court held that this rule was within the DOL’s authority because the DOL has explicit statutory authority to “define and delimit” the terms of the exemptions to the Federal Wage and Hour law.

Why this Matters? This Decision Supports the DOL’s 2024 Rule Substantially Increasing the Salary Threshold

In 2024, the DOL substantially increased the salary threshold required for an employee to be exempt from overtime requirements. The current threshold, effective July 1, 2024, is $43,888 per year. That means that as of today, employees must be earning a salary of at least $43,888 to be properly classified as exempt. However, this threshold will not last long, as another substantial increase takes effect January 1, 2025, raising the threshold to $58,656 per year.

Currently, this 2024 DOL rule is facing several legal challenges in courts, but the DOL rule is still in effect. It is almost certain that the DOL will rely heavily on the Federal Appeal Court’s recent decision upholding its 2019 salary threshold increase to support its 2024 salary threshold increase.

What Should Employers Do Now?

Employers need to analyze all of the employees that are currently categorized as exempt and determine whether they are still properly exempt. For “exempt” employees earning less than $43,888, employers must act immediately to address this issue or face legal exposure for misclassifying their employees as exempt. For those exempt employees earning less than $56,656, employers need to create a plan to either ensure that they are properly classified as exempt come January 1, 2025, or convert these employees to hourly.

Responding to this increase in the salary threshold is a complicated process that must be carefully reviewed with the help of legal counsel to ensure it is done correctly to reduce legal exposure to claims, charges, and lawsuits.