We all likely remember late last year, after months of legal back-and-forth, employers across the country gained temporary relief from a rule that would have significantly raised the minimum salary threshold for exempt employees under the Fair Labor Standards Act (FLSA). The U.S. Department of Labor (DOL), now under the Trump Administration, has formally asked the Fifth Circuit Court of Appeals to pause ongoing litigation as the agency reconsiders its position.
A Quick Recap: The 2024 Rule
The rule in question aimed to increase the minimum salary requirement for workers classified under the “white collar” executive, administrative, and professional roles—to qualify as exempt from minimum wage and overtime protections. The first phase of the rule took effect on July 1, 2024, raising the threshold from $684 to $844 per week ($35,568 to $43,888 annually). A second jump to $1,128 per week ($58,656 annually) was scheduled for January 1, 2025.
However, two federal courts in Texas struck down the rule. In State of Texas v. U.S. Department of Labor, the court ruled that the DOL exceeded its statutory authority by issuing a rule that heavily emphasized salary over job duties (2024 U.S. Dist. LEXIS 207864, E.D. Tex. Nov. 15, 2024). A second decision in Flint Avenue LLC v. United States DOL echoed that conclusion. As a result, the prior salary threshold of $684 per week, $35,568 annually, remains in effect.
Legal Developments: A Shift in Strategy
While the Biden Administration had appealed the Texas ruling to the Fifth Circuit, the DOL—now led by officials under the Trump Administration—filed a motion on April 24, 2025, to pause the appeal. The agency cited a need to reassess the rule, signaling it is unlikely to pursue the 2024 rule in its current form.
This marks a significant shift. While the Fifth Circuit has already acknowledged the DOL’s authority to set a salary threshold (Mayfield and R.U.M. Enterprises, Inc. v. United States DOL, 2024 U.S. App. LEXIS 23145), the court emphasized that such thresholds must not overshadow the duties-based criteria for exemption outlined in the FLSA.
More Cases in Motion
Litigation is still ongoing in the District of Columbia in Assoc. of Christian Schools Int’l v. United States DOL (No. 1:24-cv-2618). As of now, the DOL has not requested a stay in that case, even while seeking one in the Fifth Circuit.
Meanwhile, the plaintiffs in the Mayfield case—who had challenged even the prior $684 threshold—intend to take their case to the U.S. Supreme Court. This means the broader question of how much weight salary can carry under the FLSA exemptions may not be fully settled for some time.
What Employers Can Do Now
For now, the status quo holds: employers must continue to meet the $684 per week salary level to maintain exempt status under federal law, along with ensuring that exempt employees meet the job duties test. Any further changes will likely take shape slowly, as the DOL reconsiders its approach and additional court rulings emerge.
Organizations, especially those in the nonprofit sector are encouraged to monitor developments closely and consider how potential salary changes could impact budgets, staffing models, and employee classification systems. For now, it’s a waiting game, though one that gives employers a chance to catch their breath.
HR Services will continue to monitor the situation and help keep each of you informed, so stay tuned. If you have any wage & hour questions, or any other HR related issues or challenges, don’t hesitate to reach out to us at HRServices@501c.com or (800) 358-2163.
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The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources.
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