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

Texas Job Market Grows by More Than 177,000 Positions Over the Year

July 20, 2026
Texas added 43,400 nonfarm jobs in June to reach a total of 14,469,600 positions. Over the year, the state added 177,900 jobs for an annual growth rate of 1.2 percent, outpacing the national growth rate by 0.9 percentage points. Texas’ civilian labor force registered at 15,904,900 after adding 3,400 people over the month. Over the year, Texas’ civilian labor force has added 29,700 people. The seasonally adjusted unemployment rate in Texas registered at 4.4 percent. “Texas’ continued job growth is a testament to the strength of our employers and robust workforce development system,” said TWC Chairman Joe Esparza. “The addition of more than 177,000 jobs over the year reinforces Texas’ reputation among employers as the best place to start and grow a business.” The Professional and Business Services industry had the largest private sector over-the-month increase in June after adding 25,500 jobs. Leisure and Hospitality added 10,300 jobs over the month while Trade, Transportation, and Utilities added 6,400. “The growth of the Texas labor market highlights the incredible talent and dedication of our state’s workforce,” said TWC Commissioner Representing Labor Alberto Treviño III. “The Texas Workforce Commission is committed to ensuring every Texan has the support they need to thrive, whether through training opportunities to gain new skills or specialized programs that help our foster youth transition into successful careers.” The Midland metropolitan statistical area (MSA) had the lowest unemployment rate with a not seasonally adjusted rate of 3.6 percent in June. It was followed by the San Angelo MSA at 3.9 percent and the Abilene MSA at 4.0 percent. “With an annual growth rate of 1.2 percent, Texas continues to outpace the national average and demonstrate economic resilience,” said TWC Commissioner Representing the Public Brent Connett. “Both job seekers and employers can seek customized career services and recruitment assistance by visiting our TWC website or their local Workforce Solutions office.” 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 . The Texas Labor Market Information Data for July is scheduled to be released on Friday, August 21, 2026, at 9:00 a.m. (CT).

Building Connections, Strengthening Child Care

July 20, 2026
Workforce Solutions East Texas Child Care Services is proud to partner with the Panola County Chamber of Commerce to support child care leaders across the region. Through this partnership, the Chamber provides a welcoming meeting space for Directors Connect training designed to help early learning program owners and directors connect, learn, and grow together. The partnership was made possible through the support of Keri Perot-Vance, Executive Director of the Panola County Chamber of Commerce, whose commitment to community collaboration helped create a space where child care leaders can come together to share ideas, discuss challenges, and strengthen their leadership skills. The partnership began in 2025 in response to daycare owners expressing a need for accessible training opportunities. Recognizing this need, Panola County Chamber of Commerce graciously offered to host the Directors Connect training in its beautiful historic building. This collaboration provides child care professionals with the opportunity to earn professional development hours required to remain in compliance with Child Care Regulation and Texas Rising Star. Tonia Crawford and Aerial Jones, Business Industry Specialists for Child Care Services and facilitators of Directors Connect, say the program has evolved into so much more than a training opportunity. It has become a space for meaningful conversations, professional connections, and shared solutions. Through these gatherings, directors are strengthening their businesses, growing as leaders, and ultimately enhancing the quality of care provided to children and families throughout East Texas. Workforce Solutions East Texas Child Care Services is grateful for the Panola County Chamber of Commerce's ongoing support and looks forward to continuing this impactful partnership for years to come. Together, we are investing in stronger leaders, stronger child care programs, and stronger communities.

Workforce Solutions East Texas Celebrates New Tyler Location

By Workforce Solutions East Texas • July 13, 2026
Workforce Solutions East Texas welcomed an excellent crowd on July 8, 2026, for a ribbon cutting celebrating its new Tyler Workforce Center in Midtown Centre. The event marked an important milestone for the organization and highlighted its continued commitment to expanding access to workforce services in one of East Texas’s key communities. Workforce Solutions East Texas provides no-cost services for employers and job seekers and is part of the broader Texas Workforce Solutions network overseen by the Texas Workforce Commission. Guests heard remarks from Congressman Nathaniel Moran, Workforce Solutions East Texas Board Chair Gene Keenon, Chief Elected Officials Board Chair Marion County Judge Leward LaFleur, ETCOG Executive Committee 2nd Vice Chairman and Smith County Commissioner Ralph Carraway Sr., and ETCOG Executive Committee Chairman and Whitehouse Mayor James Wansley. Located at 1421 S. Beckham Avenue, the new center strengthens Workforce Solutions East Texas’s presence in Tyler and offers a larger, more connected space for service delivery. The 28,500-square-foot facility brings departments together under one roof and was designed to support employers, job seekers, and community partners with convenient access and room for future growth. The new center reflects the organization’s mission of connecting East Texans to opportunity while helping businesses recruit, hire, train, and retain skilled workers. Through local partnerships and support from the Texas workforce system, Workforce Solutions East Texas continues working to strengthen the regional economy and create pathways to long-term success for East Texas families and communities.
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