Fidlon Legal, PC HomeLegal Update - DOL Rule Increasing Minimum Salary Thresholds for Overtime Exemptions
In April 2024, the U.S. Department of Labor (DOL) finalized a regulation that increased the minimum salary thresholds for workers to qualify for overtime exemptions under the Fair Labor Standards Act (FLSA). The new rule raised the salary level for exempt executive, administrative, and professional employees, effective July 1, 2024, from $684 per week ($35,568 annually) to $844 per week ($43,888 annually). The rule would have also increased the threshold a second time to $1,128 per week ($58,656 annually), effective January 1, 2025, with automatic increases every few years to keep pace with inflation. The new rule represented one of the most impactful wage-and-hour developments in years, as it would have allowed thousands of Georgia employees who were previously ineligible for overtime pay to qualify.
Texas Courts Strike Down the RuleHowever, in November and December 2024, two federal courts in Texas struck down the DOL’s final rule, finding that it exceeded the Agency’s statutory authority under the FLSA. The courts found that the DOL’s approach, which significantly raised salary thresholds, effectively created a de facto rule about the classification of employees, which should be determined by Congress, not an administrative agency. Both rulings vacated all components of the rule, meaning both the July and January increased salary thresholds set under the final rule were no longer in effect and the automatic updates to the minimum salary threshold would not take place.
Appeals and Current StatusIn November 2024, soon after the first Texas court ruling, the Biden administration’s DOL filed an appeal to the Fifth Circuit Court of Appeals. In February 2025, the DOL under the Trump administration appealed the second Texas court ruling. The appeals are currently pending. In April 2025, the DOL filed an unopposed motion to hold its appeals in abeyance pending the DOL’s reconsideration of the final rule, signaling the Trump administration’s likely intent to stop defending the rule.
What This Means for Georgia EmployersThe new salary thresholds for overtime exemptions are not in effect following the Texas court rulings. Because the pending appeal or further DOL rulemaking could result in the minimum salary thresholds changing, employers should:
- Continue to follow the pre-July 2024 minimum salary threshold ($684 per week) while monitoring further legal developments.
- Review which employees are close to the old and new salary thresholds.
- Prepare contingency plans for potential salary adjustments.
- Ensure job duties align with exemption requirements under the existing FLSA tests.
If you are salaried and earning near the current threshold, keep track of:
- Whether your employer intends to reclassify you as non-exempt if the appeals reinstate the DOL rule.
- Any communications about pay adjustments or changes in overtime eligibility.
Even without the rule change, FLSA misclassification remains one of the most common wage violations under federal and Georgia law.
Frequently Asked QuestionsNot currently. Two Texas federal courts have struck down or enjoined enforcement, but appeals are pending.
Yes. It’s prudent to evaluate payroll structures and identify employees who might be affected if the rule is reinstated.
The existing minimum salary threshold for overtime exemption remains $684 per week ($35,568 per year) until further notice.
Yes. If the appellate court reverse the Texas rulings, the DOL’s updated thresholds could eventually take effect.
Yes. If the appellate court reverse the Texas rulings, the DOL’s updated thresholds could eventually take effect.
We routinely assist Georgia employers with wage-and-hour compliance and represent employees who believe they’ve been denied proper overtime pay.
If you have any questions about the FLSA’s overtime exemptions, you should contact the top Atlanta, Georgia overtime lawyers at Fidlon Legal for a confidential free case evaluation.
