On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated and set aside the U.S. Department of Labor (DOL)’s final regulation increasing the salary threshold for the overtime exemption under the Fair Labor Standards Act (FLSA) on a nationwide basis. The court struck down the July 1, 2024 increase as well as the threshold set to become effective on January 1, 2025. The minimum salary previously in effect since 2019 was $684 per week, or $35,568 per year. Effective July 1, 2024 the DOL increased the minimum salary to $844 per week, or $43,888 per year and was scheduled to be increased again on January 1, 2025 to $1,128 per week, or $58,656 per year. The DOL filed a notice of appeal on November 26, 2024 in an attempt to overturn the decision in Texas v Department of Labor. Nonetheless, as of November 15, 2024 employers are not required to pay overtime to employees who are paid a salary of at least $684 per week and meet the other requirements under the duties tests for the administrative, professional, or executive exemptions. In addition, employers will not have to implement the increases that were set to go into effect on January 1, 2025. The incoming administration will likely have some affect on how the DOL will proceed which may include having the DOL drop their appeal or implement a different rule. Employers who plan to implement changes to existing wages should consider notifying employees in advance of doing so. In addition, employers should make sure their employees continue to satisfy the “duties” test.