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    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 Lindsay Vanderbilt March 17, 2025
    The Texas labor market achieved new record highs for both jobs and the civilian labor force in January. The state added 27,900 positions over the month, reaching a total of 14,236,400 nonfarm jobs. Texas added 187,700 jobs from January 2024 to January 2025, bringing the annual nonfarm growth rate to 1.3 percent. January marks 55 of 57 months of growth for Texas’ civilian labor force, which achieved another new record high of 15,750,800 after adding 23,100 people over the month. Over the year, Texas’ civilian labor force has added 351,200 people. The seasonally adjusted unemployment rate in Texas registered at 4.1 percent. “With more than 187,000 jobs added over the year, Texas’ continued growth shows the strength of the Texas economy,” said TWC Chairman Bryan Daniel. “Our commitment to a skilled workforce is essential to the state’s continued economic success.” The Private Education and Health Services industry had the largest over-the-month increase in January after adding 9,700 jobs. In addition, Professional and Business Services added 3,700 jobs over the month and Mining and Logging added 2,300. “New opportunities are emerging every day in Texas, and we must be prepared to seize them as a pathway to long-term growth,” said TWC Commissioner Representing Labor, Alberto Treviño III. “TWC recognizes that the needs of job seekers are diverse, and we offer a variety of programs to help Texans achieve their career goals.” The Midland Metropolitan Statistical Area (MSA) had the lowest unemployment rate among Texas MSAs with a not seasonally adjusted rate of 3.0 percent in January, followed by the Amarillo MSA at 3.1 percent and the San Angelo MSA at 3.3 percent. “Texas continues to attract new and expanding businesses across a wide range of industries,” said TWC Commissioner Representing Employers Joe Esparza. “We encourage employers to explore TWC programs like the Skills Development Fund, so they can develop their workforce to compete in a global market.” 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 February is scheduled to be released on Friday, March 28, 2025, at 9:00 a.m. (CT).
    By Workforce Solutions East Texas February 24, 2025
    Workforce Solutions East Texas is seeking the public's input on its 5-year development plan to support regional economic growth and self-sufficiency by providing a first-class workforce for businesses and supporting the growth of local industries. The development plan outlines goals for preparing an educated and skilled workforce and education services for youth and impaired individuals seeking employment. The Board will accept public comments for a 21-day period beginning February 24, 2025. Mission The mission of the Workforce Solutions East Texas Board is to improve the quality of life through economic development by providing a first-class workforce for present and future businesses. Vision Workforce Solutions East Texas has active economic development with a premier workforce attracting and supporting growth of businesses and industry. For public comments, please click here to contact Gary Allen.
    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.
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