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FLSA Injunction on Salary Threshold for Exempt Employees

Client Alert
November 15, 2024

A November decision issued by the Eastern District of Texas officially “vacated” the Department of Labor’s Final Rule, nationwide, raising the salary threshold for exempt employees. Interestingly, the Court decided to vacate the rule and “set it aside,” rather than issue an injunction based on a directive from the Fifth Circuit that calls for “illegal agency action” to be nullified and revoked, rather than stayed. The decision can be located here: https://www.cupahr.org/wp-content/uploads/OT-SJ-Decision.pdf

What does this mean for employers?

  1. January 1st salary increase requirement for exempt employees will no longer be required, and employers will not be required to raise salaries to maintain the exemption status.
  2. The Court also held that the July 1st increase requirement was similarly unlawful and; therefore, employers who did raise employees’ salaries could theoretically drop them back to, at or above, $35,568 and still maintain the exemption.

Although the Department of Labor could appeal this decision to the Fifth Circuit, such appeal would not conclude by January 20th when it is expected that Trump’s AG/DOL would drop the appeal.

If your clients would like to further discuss how this ruling impacts them or how to unwind previous changes, please do not hesitate to contact Bryan Meek at 330.253.5586 or bmeek@bmdllc.com.

FLSAFLSA overtime thresholdsDOL
Client Alert

Department of Education Proposes Redefinition of “Professional Degree,” Excluding Nursing and Limiting Graduate Loan Borrowing

February 20, 2026The U.S. Department of Education has issued a Notice of Proposed Rulemaking that would redefine “professional degree” programs under the One Big Beautiful Bill Act. The proposal excludes nursing from the recognized list and would impose new borrowing limits for graduate students while eliminating the Grad PLUS program. Public comments are due by March 2, 2026.Client Alert

First-of-Its-Kind Federal Ruling Finds Use of Consumer AI Tool May Destroy Attorney-Client Privilege

February 17, 2026On February 10, 2026, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York issued a first-of-its-kind ruling finding that documents generated by a criminal defendant using a consumer AI platform were not protected by attorney-client privilege after being shared with counsel. The court treated the AI tool as a third party, concluding that entering sensitive information into a publicly available platform may waive confidentiality. The ruling also suggests that the work product doctrine may not apply where AI-generated materials are created independently by a client rather than at counsel’s direction. The decision signals that parties should exercise caution when using consumer AI tools in connection with legal matters.Client Alert

Your Golden Chance for H-1B Lottery Registration - March 2026

February 16, 2026USCIS H-1B registration opens March 4–19, 2026. U.S.-based employees on valid nonimmigrant status are exempt from the $100,000 fee for change of status petitions. The new weighted lottery favors higher-skilled and higher-paid employees, improving odds for advanced degree holders and Wage Level 3 or 4 workers.Client Alert

Invisible Algorithms: The Hidden Role of Artificial Intelligence in USCIS Immigration Processing

February 10, 2026The Department of Homeland Security has confirmed that artificial intelligence and machine learning tools are now integrated into numerous operational functions within U.S. Citizenship and Immigration Services (USCIS). These tools are described as mechanisms to improve efficiency, reduce backlogs, and assist officers in managing an unprecedented volume of applications. DHS emphasizes that human adjudicators retain decision-making authority and that AI systems do not independently grant or deny immigration benefits. Find out how AI affects the U.S. immigration process.Client Alert

OAAPN | Year In Review: 2026 Ohio Board of Nursing and Ohio Law Rules

February 9, 2026Find out key changes to Ohio law and the Ohio Board of Nursing rules that have directly impacted APRN practice over the past year, including Psychiatric Inpatient Documents, Intimate Examinations, Signature Authority, Duties Related to Fetal Death, Retail IV Therapy Clinics, Release from Permanent Restrictions, Disciplinary Action, Course on Drugs and Prescriptive Authority, Overdose Reversal Drugs, Office Based Opioid Treatment, Withdrawal Management for Substance Use Disorder, Safe Haven Program, and more.
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