
- Legal Compliance & Safety
- Understanding the Impact of the Halted Salary Threshold Increase for Exempt Employees and Key Considerations for Employers
In November 2024, a rule to raise the salary threshold for exempt employees under the Federal Labor Standards Act was halted by a federal court, which deemed the increase to $59,000 excessive. The court reset the threshold to about $35,000, affecting planned raises and automatic adjustments. Businesses still must navigate compliance with both federal and state laws, review exemption statuses and communicate changes clearly to avoid misclassification. READ MORE