Important Update: Recent Fair Labor Standards Act (FLSA) Ruling

November 15, 2024 marked a significant update to the Fair Labor Standards Act (FLSA) exemption threshold ruling for January. A judge in the U.S. District Court for the Eastern District of Texas struck down all components of the Biden administration’s FLSA overtime final rule.

Background

As highlighted in our April 29th announcement, the Department of Labor (DOL) proposed changes to the FLSA regulations in a two-phased approach. The first increase took effect on July 1, 2024, raising the minimum salary threshold from $35,568 annually ($684/week) to $43,888 annually ($844/week). The second increase was set for January 1, 2025, to further raise the threshold to $58,656 annually ($1,128/week). The final rule also included automatic updates to the minimum salary threshold every three years.

Next Steps

Following the recent court ruling, Baylor will not proceed with any exemption changes for January.

Baylor University remains committed to ensuring compliance with federal labor standards and maintaining correct and consistent exemption classifications for our staff. We will continue to monitor legal developments and provide updates as necessary.

If you have questions concerning FLSA, please reach out to your HR Consultant.