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News Update

Legal Challenge to the FLSA Salary Threshold Changes Filed

A photo of a gavel.

Several business groups filed a lawsuit on May 22, 2024, in the Eastern District of Texas challenging implementation of the second phase of the FLSA weekly salary threshold changes currently scheduled to become effective January 1, 2025.

The lawsuit contends that the $1,128 threshold, effective in January, exceeds the level established by the court in a 2017 ruling. The lawsuit also argues that the increase in salary thresholds shifts the focus from the job duties test to salary level when determining if a position is exempt.

Implications for Employers

Education entities are advised to continue steps to comply with the new thresholds beginning on July 1, 2024, but keep abreast of the legal challenge and pivot as needed. Employers need to ensure salaries and minimum salary ranges for exempt non-teaching staff meet the July 1 threshold of $844 and January 1 threshold of $1,128. Because of the legal challenge to the second phase of the increase, it may be best for employers to plan for a two-part adjustment — one effective in July and the second effective in January.

Generally, state law prohibits midyear changes to pay. However, adjustments to pay during the year to comply with federal mandates are allowed. As a result, there is no need to include language in the compensation plan now to account for January 1 changes. If a pay plan needs to be updated to comply with the salary thresholds, the board can adopt a revision to the compensation plan midyear.

Understanding the Salary Threshold Changes

HR Services has several articles to help employers understand the required salary threshold changes and plan for implementation (TASB login required):

More information is also available in the recorded webinar The Impact of the 2024 FLSA Changes on Public Schools (member login required). The following HR Services Resource Library items are also available to HR Services members:

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April Mabry
April Mabry
Best Practices: Salary Notification Letters

April Mabry oversees HR Services training services, member library products, and the HRX newsletter. She has provided HR training and guidance to Texas public schools  since 1991. Mabry was a classroom teacher for 11 years in Texas and Michigan.

Mabry has a bachelor’s degree in education from the University of Michigan and certification as a professional in human resources (PHR) and is a SHRM-CP.

HR Services

TASB HR Services supports HR leadership in Texas schools through membership offerings in specialized training, consulting, and other services.

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