The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.
The recent changes to the FLSA salary threshold have been vacated.
On November 15, 2024, a federal judge in Texas ruled to set aside and vacate the proposed FLSA salary threshold increase. This ruling blocks the scheduled raise to the salary threshold on January 1, 2025. Read the news story about the ruling from Reuters.
Key Takeaways
- No Change to Exempt Status: We will no longer need to transition employees from exempt/salaried to nonexempt/hourly status effective January 1, 2025.
- July Salary Increase Vacated: The court’s decision also strikes down the July 1, 2024, salary threshold increase to $43,888, reverting the threshold to its 2019 level of $35,568.
- UNL will not revert any salary increases processed during the 7/1/24 implementation.
- If a manager wishes to revisit a staff position that was moved to non-exempt during that time, please reach out to hrclasscomp@unl.edu. For faculty positions, please contact the appropriate VC Office.
- Automatic Updates: This ruling also vacates the automatic updates to the salary threshold planned to occur every three years.
- Low Likelihood of Appeal: Given the recent election of Donald Trump and his administration’s stance, an appeal by the federal government seems highly unlikely.