Last spring, the Department of Labor announced the minimum salary required for an employee to be considered salaried exempt would jump up from $684 per week to $1,059 per week, or $55,068 per year. This was a two-step process, with the minimum salary jumping to 844 per week ($43,888 annually) in July.
A Texas federal judge ended all that on Friday, ruling that the Department of Labor had overstepped its bounds and sending the minimum salary for salary exemption back to $684 per week, or $35,568 annually. Employees who are exempt are not eligible for overtime regardless of how many hours they work.
If you have employees who you switched to hourly pay in July or to whom you gave a raise so you could keep the exemption, you can undo that. But first, think through what this means and what could still happen.
To keep reading, click here: If You Were Nervous About the Salary Exemption Minimum Jumping to $55,068 a Year, Don’t Be. A Texas Federal Judge Just Quashed It
