Updated FLSA Salary Threshold Rule Pushed Off Until August

Article contributed by Mark Adams, EANE

Employers have been waiting for some time on what the United States Department of Labor was going to do with “modernizing” their salary threshold rule under the Fair Labor Standards Act as the current threshold of $684/week has been in place since January 1, 2020.

Previously scheduled to be released in October 2022, the United States Department of Labor punted it to May 2023 when they had published its semi-annual regulatory agenda for 2023. 

When May came and went without any fanfare, many wondered if another delay was coming and sure enough – there is, as now we are looking at an August release.

How high will it go?  Will the figure be indexed for automatic changes moving forward?  All valid questions and the answers to all are to be determined.  However, when it is to be released, it still has to go through the standard rulemaking process (which involves a commentary period, a finalization of the rule and then typically a phase before it takes effect).  Add to that the potential of legal challenges, and it appears likely that we won’t see a final determination of this issue until 2024.  However, we will keep you posted.