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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

Five Common Pitfalls for Employers to Watch Out for Under the Fair Labor Standards Act

March 29, 2023The Fair Labor Standards Act (FLSA) sets forth requirements for employers including, but not limited to, minimum wage, overtime pay, and recordkeeping for covered employees. These requirements are not as simple as they may appear on their face, which leads many employers to fall into compliance issues that they did not realize even existed.Client Alert

The NLRB Limits the Reach of Confidentiality and Non-Disparagement Provisions in Severance Agreements Overruling Trump-Era Policies

March 14, 2023Employers should exercise caution and closely examine the content of severance agreements to ensure compliance with a recent National Labor Relations Board (“NLRB”) decision.  On February 21, 2023, the NLRB restricted the breadth of permissible language of confidentiality and non-disparagement clauses when it issued its decision in McLaren Macomb and overruled its Trump-era decisions in Baylor University Medical Center and IGT d/b/a International Game Technology.Client Alert

Ohio Medical Board Releases New Telehealth Rules

February 23, 2023On Tuesday, February 21, 2023, the State Medical Board of Ohio released its final telehealth rules to implement Ohio’s telehealth statute (O.R.C. 4743.09) for physicians, physician assistants, dieticians, respiratory care professionals and genetic counselors. Ohio’s advanced practice registered nurses (“APRNs”) should also take note of these rules. While the Medical Board does not govern APRNs directly, those APRNs who are required to have a collaborating physician and standard care arrangement (namely nurse practitioners, certified nurse midwives, and clinical nurse specialists) are still affected by the rules. Generally, if an APRN’s collaborating physician is limited in their practice, then the APRN will also be limited.Client Alert

The End of the Public Health Emergency is (Finally) Here

February 23, 2023The COVID-19 Public Health Emergency (“PHE”) that has been in effect for over three years is finally slated to end on May 11, 2023.[1] With the end of the PHE will come many changes for healthcare providers to be aware of; however, some changes may not come until much later.Client Alert

Multi-340B Contract Pharmacy Locations on the Brink? The Third Circuit’s Ruling Gives a Hint.

February 17, 2023The 340B drug discount program requires pharmaceutical manufacturers to offer to sell their products at significant discounts to safety net providers called “covered entities.” In 1996, the Health Resources and Services Administration (HRSA) issued guidance authorizing covered entities to enter into a contract pharmacy arrangement with a single third-party contract pharmacy, to which the manufacturer would ship 340B medications but bill the covered entity. In 2010, HRSA issued revised guidance permitting covered entities to enter into an unlimited number of contract pharmacy arrangements.
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