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Started By
Message
Texas judge throws out FLSA changes
Posted on 11/15/24 at 6:22 pm
Posted on 11/15/24 at 6:22 pm
For those boss types here:
"The ruling vacates the DOL’s rule in its entirety nationwide, including the increase that went into effect on July 1, 202. As a result, the salary threshold exempt status reverts back to the DOL’s 2019 rule, which set it at $684 per week or $35,568 annually. However, the DOL could appeal the decision to the Fifth Circuit, though whether the DOL decides to push forward may be impacted by the incoming DOL under the new Trump administration."
National Law Review
"The ruling vacates the DOL’s rule in its entirety nationwide, including the increase that went into effect on July 1, 202. As a result, the salary threshold exempt status reverts back to the DOL’s 2019 rule, which set it at $684 per week or $35,568 annually. However, the DOL could appeal the decision to the Fifth Circuit, though whether the DOL decides to push forward may be impacted by the incoming DOL under the new Trump administration."
National Law Review
6
Posted on 11/15/24 at 7:18 pm to ohieaux
What in the frick do these acronyms stand for?
Posted on 11/15/24 at 7:20 pm to HoustonGumbeauxGuy
quote:
do these acronyms stand for?
Pretty sure DOL is Dept of Labor…
This post was edited on 11/15/24 at 7:22 pm
Posted on 11/15/24 at 7:26 pm to HoustonGumbeauxGuy
Federal Labor Standards Act
Posted on 11/15/24 at 7:29 pm to ohieaux
So salary exempt raise isnt happening?
Posted on 11/15/24 at 7:39 pm to ohieaux
I cba to read the entire opinion, but this bit gives me pause:
We dealt with insane levels of inflation in that five year period. I'm no friend of the leviathan that is the regulatory state, but if it's going to exist, saying that this exceeds the regulatory scope because it came too soon begs credulity just a bit.
quote:
As such, the judge examined the impact of the 2024 salary threshold increases in comparison with the impact of prior adjustments and the frequency of such adjustments, noting that this increase comes only five years after the DOL increased the salary levels in 2019 as compared to the previous average of once every nine years.
We dealt with insane levels of inflation in that five year period. I'm no friend of the leviathan that is the regulatory state, but if it's going to exist, saying that this exceeds the regulatory scope because it came too soon begs credulity just a bit.
Posted on 11/15/24 at 8:49 pm to Joshjrn
It most certainly was going to be inflationary
Posted on 11/15/24 at 9:22 pm to ohieaux
Most employers would likely just convert employees significantly below the salary threshold to an equitable hourly rate anyways. This is great news in that employers have more flexibility with compensation to fit business and employee needs.
Posted on 11/15/24 at 9:35 pm to CrazyTigerFan
quote:
Federal Labor Standards Act
FAIR Labor Standards Act
FIFY
Posted on 11/15/24 at 9:56 pm to ohieaux
Imagine making $35,568 a year and being considered white collar. No overtime for you, you fat cat executive.
Posted on 11/15/24 at 10:15 pm to Twenty 49
This definitely need sto go up but this was too much too fast
Posted on 11/15/24 at 10:52 pm to jmarto1
quote:
So salary exempt raise isnt happening?
Maybe it is, maybe not. But here’s the problem, if this decision is overturned on appeal, it’s as if it never happened. Every employer who did not pay overtime to an employee in this group while the case was on appeal will owe back wages, penalties and attorney fees to every employee who wasn’t paid.
Posted on 11/16/24 at 4:10 am to Joshjrn
quote:While that inflation doesn't match up with wage growth, it still wasn't almost 60% (the approximate delta in the salary threshold).
We dealt with insane levels of inflation in that five year period. I'm no friend of the leviathan that is the regulatory state, but if it's going to exist, saying that this exceeds the regulatory scope because it came too soon begs credulity just a bit.
ETA: I also do genuinely believe the previous threshold was entirely too low.
This post was edited on 11/16/24 at 4:32 am
Posted on 11/16/24 at 4:33 am to Twenty 49
quote:There is also the job duties test, which most people making a $35K salary don't meet.
Imagine making $35,568 a year and being considered white collar. No overtime for you, you fat cat executive.
This post was edited on 11/16/24 at 4:33 am
Posted on 11/16/24 at 5:04 am to ohieaux
We won’t have to worry about this when everyone is unemployed.
Posted on 11/16/24 at 8:01 am to Pax Regis
Fair enough.
Posted on 11/16/24 at 9:01 am to Gravitiger
This law is honestly so poorly framed and used higher COL states to define the minimum for everyone. Just because places like NY and CA want to inflate their costs and salaries to then accommodate that should not be used to punish businesses in the other states.
It’s low because it covers the entire country much like minimum wage should.
States are free to increase their thresholds at the state level if they feel it is too low for them.
It’s low because it covers the entire country much like minimum wage should.
States are free to increase their thresholds at the state level if they feel it is too low for them.
Posted on 11/16/24 at 10:18 am to Geauxgurt
I could be wrong, but I don't think states can enforce a higher salary threshold than FLSA, because that would be giving employees less protection than federal law gives them. Even if the state has a higher threshold on paper, the employee would still be entitled to overtime under the federal threshold.
Same way that states can't enforce a lower minimum wage than FLSA requires. Some states have official minimum wages that on paper are lower than the FLSA rate, but they are unenforceable and the FLSA rate still applies to employees in those states. States can provide more protection (i.e., lower exempt salary thresholds or higher minimum wages) but not less.
ETA: On second thought, my logic might be backwards. I think you are right. I am going to leave my original response up to show what a moron I am.
Same way that states can't enforce a lower minimum wage than FLSA requires. Some states have official minimum wages that on paper are lower than the FLSA rate, but they are unenforceable and the FLSA rate still applies to employees in those states. States can provide more protection (i.e., lower exempt salary thresholds or higher minimum wages) but not less.
ETA: On second thought, my logic might be backwards. I think you are right. I am going to leave my original response up to show what a moron I am.
This post was edited on 11/16/24 at 10:39 am
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