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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

Recent HIPAA Breach Settlements - Lessons Learned

June 19, 2023According to the U.S. Department of Health and Human Services’ (HHS) Office for Civil Rights (OCR), the consequences for providers may include settlements of $30,000 to $240,000. OCR recently released two settlements for improper breaches of protected health information (PHI) that are good examples of the major monetary penalties that can result from common HIPAA mistakes.Client Alert

Supreme Court Issues Major False Claims Act Decision

June 5, 2023Client Alert

Telehealth Flexibility Updates: HIPAA, DEA, and CMS

May 12, 2023The Covid-19 Public Health Emergency (PHE) officially ended on May 11, 2023. But what does that mean for telehealth, a field that expanded exponentially during the PHE? Fortunately, many of the flexibilities will remain intact, at least temporarily. This client alert presents a brief overview of the timelines that providers need to follow, but for a more comprehensive review of telehealth flexibilities and when they will endClient Alert, Multimedia

WEBINAR SERIES RECAP | Ending the Public Health Emergency + Post-Pandemic Check-Up

May 10, 2023Some may take the position that the rest of the country already returned to a new “normal” following the COVID-19 pandemic.  But healthcare providers continue to implement COVID protocols and navigate the ever-changing healthcare regulations at both the federal and state levels.  It is important for healthcare providers to take time for a “Healthcare Check-Up” with the start of 2023 and the ending of the Public Health Emergency (“PHE”).Client Alert

Sharp Rise in False Claims Act Cases - Navigating the FCA Waters

May 5, 2023Recently, on April 18, 2023, the United States Supreme Court heard arguments regarding the FCA’s scienter, or mental state, requirement. To prove violation of the FCA, the statute requires that a defendant “knowingly” file false claims for payment. The term “knowingly” is defined within the statute to mean a person that acts with actual knowledge, deliberate ignorance, or reckless disregard. Circuit courts are split on how to interpret and apply the knowledge element of the FCA, and based on the Supreme Court’s decision, there will be a large impact on healthcare defendants and their businesses as well as anyone who contracts with, or receives money from, a federal program. A broader interpretation of the FCA would unnecessarily target and stifle healthcare, and other businesses, for simple errors in daily operations. This goes against the intended application of the FCA, which was to prevent fraudulent activity.
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