Wage Laws are going "Back to the Future!"
Several months ago, the Biden Administration increased the minimum salary threshold (i.e., the lowest amount of money that a salaried exempt employee can earn each year). The minimum salary increased from $35,568 to $43,888, effective July 1, 2024. The Administration also scheduled another (even bigger) wage increase for January 1, 2025.
Last week, a federal judge in Texas ruled that the Biden Administration did not have authority to make such a big change to the minimum salary threshold, and ordered that the salary threshold go back to what it was in the past - $35,568. The judge also ruled that the upcoming changes at the beginning of 2025 were also improper and will not take effect.
These unexpected changes, throwing the rules "back to the future," can have troubling consequences for both employees and business owners. If you have already made salary changes based on the July 1st rules, can you change them back? What if you have told workers their salary will be increasing in 2025 to keep up with the legal changes?
Feel free to reach out to our team of HR lawyers if you have any questions about these legal changes - we're here to help!