Mon - Fri: 8am - 5 pm   |  P: 1-844-ETWORKS

A logo for workforce solutions east texas

    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


    A woman is standing next to a woman sitting at a desk in a classroom.
    By Workforce Solutions East Texas February 11, 2025
    Workforce Solutions East Texas is bringing back its highly anticipated Windows of Opportunity Job Fair on February 13, 2025. This event will take place simultaneously across all five Workforce Solutions East Texas offices, providing job seekers with direct access to hiring agents from a wide range of industries. The job fair serves as a crucial bridge between local talent and top employers, facilitating face-to-face interactions that allow candidates to explore career opportunities, network with industry professionals, and even secure interviews on the spot. Whether you're looking for a new job, considering a career change, or just starting your job search, the event offers a great opportunity to tap into the vibrant job market of East Texas. The Windows of Opportunity Job Fair will feature a diverse range of employers eager to connect with job seekers in industries such as healthcare, manufacturing, retail, logistics, and more. Below is a list of participating employers by location: 9:00 AM - 12:00 PM Longview Workforce Center 1905 W. Loop 281, Suite 40 , Longview, TX 75604  Express Spherion Staffing Elwood Staffing West Fraser Crossroads Family Care Trinity Rail Thomas Oilfield Services Texas Department of Public Safety Oceans Behavioral Hospital of Longview Community Healthcore 1st Choice Personnel TDCJ Always Best Care Senior Services Cato City of Longview Athens Workforce Center 205 N. Murchison, Suite 101, Athens, TX 75751 Get A Handyman Volt Dr. Power Washer VRS New Health Concept Inc. Henderson Co. Help Center Park Highlands Nursing and Rehabilitation Van Zandt County Sheriff’s Office TDCJ Met-Motivation, Education and Training Consolidate Tank U.S. Army Providence Equipment Tyler Workforce Center 4100 Troup Hwy, Tyler, TX 75703 Baker Ripley Christus Health TDCJ TVC Tyler Pipe Jarvis Christian University Tyler ISD Concentrix New Health Concept Inc. Hood Packaging Elwood Staffing Spherion Staffing Hall Buick and GMC Tarrant Co. Sheriff’s Office At Home Healthcare Express Employment Professionals Community Healthcore Austin Bank Cricket Wireless PI Tape Texas Brookshire’s Grocery Baylor PD Amer Technology 1:00 PM - 4:00 PM Palestine Workforce Center 500 E. Murchison St., Palestine, TX 75801 AOF Industries TDCJ Intouch Financial Group Verdant Technologies Pentecom U.S. Army Marshall Workforce Center 4300 E. End Blvd. S., Marshall, TX 75671 Blackburn Syrup TDCJ Boys and Girls Clubs Christus (Multiple Positions) DATCS LLC Mark your calendars for February 13, 2025, and take advantage of this valuable opportunity to advance your career at the Windows of Opportunity Job Fair.
    A doctor is holding a stethoscope in front of a laptop computer.
    By Texas Workforce Commission January 24, 2025
    The Texas labor market achieved a new record-high level for jobs and the civilian labor force in December. The state added 37,500 positions over the month, reaching a total of 14,318,700 nonfarm jobs. Texas added 284,200 jobs from December 2023 to December 2024, bringing the annual nonfarm growth rate to 2.0 percent, which outpaced the U.S. growth rate by 0.6 percentage points. December marks the twelfth consecutive month of growth for Texas’ civilian labor force, which achieved another new record high of 15,575,900 after adding 39,900 people over the month. Over the year, Texas’ civilian labor force has added 445,300 people. The seasonally adjusted unemployment rate in Texas registered at 4.2 percent. In our region, Longview comes in at 4.2 percent, and Tyler at 3.4 percent. “This new record-high level for jobs and the civilian labor force shows the strength of Texas’ economy,” said TWC Chairman Bryan Daniel. “TWC will continue its efforts for continued economic growth by connecting job seekers with employers and providing job training for Texans.” The Professional and Business Services industry had the largest over-the-month increase in December after adding 17,800 jobs. In addition, Trade, Transportation, and Utilities added 10,400 jobs over the month and Leisure and Hospitality added 3,700. In Texas, Financial Activities grew by 3.6 percent over the year and outperformed the industry’s growth rate nationally by 3.0 percentage points. “The Texas economy is thriving in diverse sectors," said TWC Commissioner Representing Labor, Alberto Treviño III. "I encourage job seekers to leverage TWC resources to find rewarding career opportunities that best match their skills.” The Midland Metropolitan Statistical Area (MSA) had the lowest unemployment rate among Texas MSAs with a not seasonally adjusted rate of 2.4 percent in December, followed by the Amarillo MSA at 2.6 percent and the College Station-Bryan MSA at 2.7 percent. “Texas employers are creating jobs at a rate that outpaces the nation,” said TWC Commissioner Representing Employers Joe Esparza. “TWC offers a wide range of programs to meet the workforce needs of today and prepare Texans for projected job growth in the years ahead.” 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 January is scheduled to be released on Friday, March 14, 2025, at 9:00 a.m. (CT).
    By Workforce Solutions East Texas December 20, 2024
    Texas’ civilian labor force achieved another new record high in November. In addition, Texas’ seasonally adjusted total nonfarm employment increased to 14,286,700 after 9,100 jobs were added over the month. Texas added 274,300 jobs from November 2023 to November 2024. Texas’ annual nonfarm growth rate reached 2.0 percent, outpacing the U.S. growth rate by 0.6 percentage points. In November, Texas’ seasonally adjusted civilian labor force achieved a new record high of 15,536,100 after adding 39,100 people over the month. This marks the eleventh consecutive month of growth for Texas’ civilian labor force. Over the year, Texas’ civilian labor force has added 403,200 people. The seasonally adjusted unemployment rate rose a tenth of a point to 4.2 percent over the month. “After another month of job growth, the Texas labor force participation rate has reached a 10-year high, at 64.7 percent,” said TWC Chairman Bryan Daniel. “This positive trend shows the strength of the Texas workforce, its employers, and its job seekers.” The Private Education and Health Services industry had the largest over-the-month increase in November after adding 5,900 jobs. In addition, Government added 3,500 jobs over the month and Financial Activities added 3,000. Financial Activities grew by 3.4 percent over the year in Texas and outperformed the industry’s growth rate nationally by 2.8 percentage points. “Texas continues to outpace the national employment growth rate, indicating that the Lone Star State is still the best place to live and work,” said TWC Commissioner Representing Labor Alberto Treviño III. “There are more than half a million job postings online, and TWC is dedicated to connecting Texans with new career opportunities.” The Midland Metropolitan Statistical Area (MSA) had the lowest unemployment rate among Texas MSAs with a not seasonally adjusted rate of 2.8 percent in November, followed by the Amarillo MSA at 3.1 percent and the College Station-Bryan MSA at 3.2 percent. “Employers continue to choose Texas because of our dynamic business environment, talented workforce, and strong community partnerships,” said TWC Commissioner Representing Employers Joe Esparza. “TWC is here to support both individuals seeking to grow their careers and employers looking to strengthen their teams, ensuring Texas remains a leader in workforce excellence.” 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 December is scheduled to be released on Friday, January 24, 2025, at 9:00 a.m. (CT).
    Show More
    Share by: