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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

The DOL and EEOC Enter a Partnership to Strengthen Federal Employment Law Enforcement

October 23, 2023On September 13, the U.S. Department of Labor’s (DOL) Wage and Hour Division and the Equal Employment Opportunity Commission (EEOC) entered into a Memorandum of Understanding (MOU) agreeing to work together in enforcing federal employment laws. The MOU forms a partnership between the two agencies to encourage coordination through information sharing, joint investigations, training, and outreach.Client Alert

Proposed Laboratory Arrangement Draws Heightened Scrutiny from the OIG

October 18, 2023On September 25, 2023, the Office of Inspector General for the U.S. Department of Health and Human Services (OIG) issued Advisory Opinion 23-06 (AO). The Opinion involved a proposed arrangement between an independent laboratory and other physician laboratories for the purchase of the technical component of anatomic pathology services. The OIG ultimately concluded that the arrangement at issue, if it was entered into with the requisite intent, would implicate the Federal Anti-Kickback Statute (AKS) and constitute grounds for sanctions.Client Alert

SMALL BUSINESS ALERT: January 1, 2024 - Beneficial Ownership Information Reporting

October 13, 2023Beginning on January 1, 2024, many small businesses across the United States will have to report personal information about their owners, beneficial owners, and others who own or exercise control over the company. The information will have to be reported to, and maintained by, the Financial Crimes Enforcement Network (“FinCEN”) as part of the Beneficial Ownership Information Rule. FinCEN is a bureau of the U.S. Department of the Treasury.Client Alert

Health Care Inclusivity for the LGBTQIA+ Community

October 5, 2023Healthcare providers, regardless of practice setting, should be aware of the healthcare disparities for LGBTQIA+ individuals, and ways in which they can be more inclusive of these individuals by making modifications to their practices.Client Alert

Obtaining Patient Consent

October 4, 2023Patients have autonomy to choose what can and cannot be done to their bodies. Therefore, informed consent is required before any treatments or procedures commence. This is a stark contrast to the previously recognized paternalistic approach, which relies solely on the decision-making of the provider. However, in order for patients to really choose whether or not to submit themselves to a particular healthcare service, they must actually understand what the service is. Therefore, patient consent should help the patient understand the risks and benefits, as well as any alternative treatment options.
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