Important Update Regarding Salaried Exempt Employees

Texas Workforce Commission • November 22, 2024

On Friday, November 15, 2024, the U.S. District Court for the Eastern District of Texas invalidated the U.S. Department of Labor's recent rule increasing the minimum salary for salaried executive, administrative, and professional (EAP) employees who are exempt from overtime pay. The rule had provided that starting July 1, 2024, the minimum weekly salary for an EAP employee would increase from $684/week to $844/week, that a further increase to $1128/week would go into effect on January 1, 2025, and that beginning July 1, 2027, the minimum salary would increase automatically every three years thereafter based on current national wage data.


The court held that the DOL exceeded its authority under Section 213(a)(1) of the Fair Labor Standards Act when it issued the rule. Under that section of the FLSA, "[t]he [minimum wage and overtime pay requirements] shall not apply with respect to 'any employee employed in a bona fide executive, administrative, or professional capacity … (as such terms are defined and delimited from time to time by regulations of the Secretary ...)'." Thus, the statute itself lays out a “duties test” for EAP employees. That test is supplemented by a two-part salary test in the regulations: first, the EAP employee must be paid on a “salary basis,” i.e., a predetermined amount that is not based on quality or quantity of work performed, and second, the salary must be at least a specified amount (the salary level test).


As the court explained in its ruling, Congress intended that employees with EAP duties be exempt from overtime pay, subject to DOL regulations that “defined and delimited” what it takes to be an executive, administrative, or professional employee. Historically, the DOL has used a salary test (salary basis pay at a certain minimum level) to distinguish EAP-level employees from other employees with lower-level duties who just happened to be paid a salary. The duties and salary tests are meant to complement each other. However, by setting the salary level so high so quickly, the DOL effectively favored the salary level test over the duties and salary basis tests. That, held the court, exceeded the agency’s authority to adopt rules, so the rule was invalid. Further, the court held that the three-year automatic salary increase provision was unprecedented in the history of the EAP regulations and had no legal basis in the FLSA.


By the time that the federal court issued its ruling, the first increase to $844/week had already gone into effect. Now that the rule has been declared invalid (including the July 1, 2024 increase to $844/week), the planned increase to $1128/week will not take place, and the automatic increases every three years beginning July 1, 2027 will also not occur. This effectively leaves the previous salary level of $684/week in place. DOL is unlikely to appeal since the incoming administration will appoint a new Secretary of Labor and a new Administrator for the Wage and Hour Division, neither of whom would be likely to support salary increases like the ones that were just invalidated by the court.


For the future, employers should consult with their legal counsel regarding proper compensation for EAP employees.


Source: TWC Texas Business Today Newsletter

From Job Seeker to Workforce Advocate: Latavia Harris’ Journey

January 20, 2026
When Latavia Harris unexpectedly lost her job, she found herself facing a moment of uncertainty. The disruption was more than financial—her plans for the future were suddenly placed on pause. Yet even in that difficult moment, Latavia chose resilience. She made the same decision thousands of East Texans make each year when navigating job loss: she applied for unemployment. That simple step became the bridge to something much bigger. Through the unemployment process, Latavia was connected to the RESEA (Reemployment Services and Eligibility Assessment) program at Workforce Solutions East Texas. RESEA provides structured guidance and support to job seekers receiving unemployment, equipping them with the tools to navigate the job search process and overcome barriers that may prevent them from returning to the workforce. In the program, staff helped Latavia refresh her resume, strengthen her interview skills, and explore new career pathways. As she gained encouragement and direction, she began to rebuild her job prospects. That journey led her somewhere she never expected—to a role within the very organization that had helped her rebuild. Today, Latavia serves as a Career Navigator for the WIOA Youth program at Workforce Solutions East Texas, joining the ranks of a team she once turned to for support. In her new role, Latavia feels a special connection with the young adults she serves. Having recently been in a similar position herself, she understands their fears, their doubts, and the courage it takes to begin again. This lived experience fuels her commitment to help them succeed, so they too can experience how Workforce programs can change a person’s future for the better. “All of the programs in Workforce do our community well,” Latavia shares. “It helps us be able to do the work and get back to work.” Latavia speaks openly about the difference her future coworkers made during her time as a participant. Their backing, encouragement, and support played a major role in helping her pursue a new and exciting career path—and find stability after a difficult season. Her transition into the workforce felt different this time, she explains: “One of the things I could tell was different in coming to Workforce from like ten years ago to when I had to come back this summer, was it was very open, very welcoming. You knew that they wanted to help you get back to work.” Being met with genuine care reshaped how she viewed workforce development—and her own goals. “It was like, wow— I want to be part of a team that is happy about what they are here doing, is happy to impact lives,” she reflects. “They wanted to genuinely help me and were happy to help me. So, I was like when I am back to work, this is the type of team I want to work with.” Latavia’s journey serves as a powerful reminder of the long-term impact of workforce development. Its value extends far beyond reemployment—it fosters confidence, builds futures, strengthens families, and contributes to the stability of communities across East Texas. What began as a setback became a calling. Latavia now helps others take their next steps forward, carrying with her a lived understanding that the right support at the right time can transform a moment of crisis into a story of resilience, renewal, and purpose.

Texas Labor Force Surpasses 15.9 million as Nonfarm Job Count Increases

January 13, 2026
Texas added 7,300 nonfarm jobs in November to reach a total of 14,321,000 positions. Over the year, the state added 146,300 jobs for an annual nonfarm growth rate of 1.0 percent, outpacing the national growth rate by 0.4 percentage points. Texas’ civilian labor force registered at 15,938,500 after adding 59,500 people since September 2025 and reaching a new record high level for the series. Over the year, Texas’ civilian labor force has added 206,800 people. The seasonally adjusted unemployment rate in Texas registered at 4.2 percent. “As Texas employers add thousands of jobs, TWC programs can help them grow, develop, and retain a skilled workforce,” said TWC Chairman Joe Esparza. “Initiatives like Skills for Small Business and the Skills Development Fund are training Texans for in-demand jobs that will cement Texas’ reputation as the best state in the nation for doing business.” The Private Education and Health Services industry had the largest private sector over-the-month increase in November after adding 5,700 jobs. Professional and Business Services added 3,900 jobs over the month while Manufacturing added 2,300. In addition, the Construction industry posted an annual growth rate of 2.8 percent in November, which was the highest of any major industry. “Texas' increasing job numbers are encouraging, and it's vital that these are good jobs that provide family-sustaining wages and benefits for Texas workers. We must continue to prioritize investments in skills training and development to ensure that all Texans can access these opportunities and share in the state's prosperity,” said TWC Commissioner Representing Labor Alberto Treviño III. “As we celebrate this growth, let's also remain committed to fair labor practices and worker protections to ensure a thriving workforce for years to come.” The Amarillo metropolitan statistical area (MSA) had the lowest unemployment rate with a not seasonally adjusted rate of 3.1 percent in November, followed by the Midland MSA at 3.2 percent. The College Station-Bryan and San Angelo MSAs both registered at 3.3 percent. “Texas’ job growth in November not only highlights the benefits of our diverse and growing economy but also underscores the importance of making sure Texans can thrive in their communities,” said TWC Commissioner Representing the Public Brent Connett. “TWC and our statewide network of local partners are able to continue strengthening the Texas economy and the foundations of our communities.” Employment estimates released by TWC are produced in cooperation with the U.S. Department of Labor’s Bureau of Labor Statistics. *All estimates are subject to revision. To access this and more employment data, visit TexasLMI.com.

Crowns & Courage: How One Mother Built a Stronger Future Through the WIOA Youth Program

December 16, 2025
When Princess Tyeskie first walked into Workforce Solutions East Texas, she carried a deep determination to build a better life for herself and her children. As a single mother with experience in fast food and retail, she was ready for something more—something stable, meaningful, and aligned with the future she dreamed of.  Through the Workforce Innovation and Opportunity Act (WIOA) Program, Princess was placed at Dr. Willis Longview Footcare Clinic. It was a new environment, but she stepped into it with courage and purpose. Her professionalism, reliability, and warm spirit quickly stood out, and she soon became a trusted part of the team. By the end of her work experience, Princess had gained more than new skills—she had earned a direct hire with the clinic as a Medical Administrative Assistant. It was a life-changing moment that reflected her determination and the power of the opportunities WIOA provides. When asked about her experience, Princess shared: “Through the Workforce Solutions East Texas Youth Program, I was given the opportunity to gain hands-on experience in the medical field—the area I aspire to specialize in.” During her Work Experience at Dr. Willis Longview Footcare Clinic, Princess quickly demonstrated the professionalism, compassion, and determination that WSET staff always knew she had. She simply needed the opportunity to show it. The WIOA Work Experience program opened that door. “My dedication and ability to adapt to the clinic’s environment led to me being directly hired after completing my work experience. This achievement reflects my commitment, my work ethic, and my passion for providing quality medical care,” Princess states. Today, Princess stands in a career she once only dreamed about—one that brings stability, pride, and a renewed sense of purpose. Her success is more than a job; it’s a foundation for her children to look up to and build upon. More than that, it’s an invitation—an invitation for others to dream bigger, take the first step, and trust that transformation begins with opportunity. Princess’s journey serves as a reminder that even when life feels heavy, adjusting your crown and moving forward can lead to powerful new beginnings.
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