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


By Workforce Solutions East Texas July 13, 2026
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For Verlie Mae Snyder, caregiving has always been more than a profession; it is a calling rooted in faith, compassion, and love for others. Originally from the Philippines, Verlie Mae worked as a Registered Nurse in her home country for eight years after earning her degree. “I love to care for people,” she shared. Working in a faith-based hospital, she believed God was the true healer and that caregivers were tools for bringing comfort and hope to those around them. In 2000, she fulfilled her dream of coming to the United States with deep gratitude and purpose. “I have a giving heart, and I want to give it to the American people,” she said. Her journey was not without challenges. She attempted to pass the NCLEX but struggled with the transition to computer-based testing. Though she did not obtain her U.S. nursing license, she never allowed that to define her. “Nursing isn’t just a license or paper; it’s about loving and caring for people.” Her journey took her through Maryland and Washington, D.C., before eventually settling in Tyler, Texas, where she worked in nursing homes and hospice care, including during the COVID-19 pandemic. Known for using music to comfort patients, she often helped residents reconnect with cherished memories through song and conversation. She also spent a year and a half caring for a local veteran with dementia, creating meaningful memories through simple joys like lake visits, birdwatching, and ice cream outings. Reflecting on his passing in 2025, she said, “I was sad, but happy that I could give him good memories at the end of his life.” After this chapter, Verlie Mae enrolled in Workforce Solutions East Texas through the RESEA program (Reemployment Services and Eligibility Assessment), which helps individuals receiving unemployment benefits return to work through career coaching and job-search support. There, she met Career Navigator Cheryl Jackson, who helped her strengthen her resume, prepare for interviews, and rebuild her confidence. “She told me, ‘Verlie Mae, you ARE a nurse,’” Verlie Mae recalled. “She lifted me up.” Through Workforce Solutions East Texas, she also accessed training and resources that strengthened her skills. “I tell everyone, go to Workforce Solutions East Texas, and they will help you,” she said. “Workforce has so many programs to help workless people or people that do not know what they want to do.” After months of persistence and faith, Verlie Mae found her next calling at Breckenridge Village of Tyler, a nonprofit residential community supporting adults with intellectual and developmental disabilities, where she now serves as a Direct Care Professional. “At Breckenridge Village, I found more than a job; I found a home,” she said. The faith-based environment and focus on kindness align closely with her values. Verlie Mae encourages others to remain hopeful and seek support when needed. “You have to love your work,” she said. “When you love what you do, you come home happy, not tired.” Through every chapter of her journey, Verlie Mae Snyder has remained guided by faith, strengthened by compassion, and committed to serving others. Her story is a reminder that purpose is not defined by a title, but by the lives you touch along the way.
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