FLSA Update November 2025

On November 15, 2024, a federal judge in the Eastern District Court of Texas ruled to strike down the Biden Administration’s Fair Labor Standards Act (FLSA) overtime final rule. The ruling strikes down all components of the rule - meaning both the July 1, 2024, and January 1, 2025 salary thresholds are no longer in effect.Ìý The decision applies to all covered employers and employees under the FLSA nationwide.

As a reminder, the final rule would have implemented a two-phase approach to increasing the minimum salary threshold under the FLSA overtime regulations. The first increase took effect on July 1, increasing the minimum salary threshold from the current level of $684 per week ($35,568 per year) to $844 per week ($43,888 per year). The second increase was to take effect on January 1, 2025, and would have increased the minimum salary threshold to $1,128 per week ($58,656 per year).

As a result of the ruling, the new FLSA rules will not go into effect on January 1, 2025, and the campus has revised its compliance plans accordingly.

With the decision, the salary threshold set in the 2019 regulations ($35,568 per year or $683 per week) will be the salary threshold employers should adhere to.

Employees who received an increase on 7/1/24 will have no changes made. Employees who were changed to FLSA eligible (non-exempt) may be moved back to FLSA exempt if they are paid at least $35,568 per year or $683 per week.

The impacts are outlined in the chart below.Ìý

Biden Administration FLSA Implementation Plan:November 15 District Court Ruling Impacts:
  • First phase, which was effective July 1,2024, increasing the minimum salary threshold from the current level of $684 per week ($35,568 per year) to $844 per week ($43,888 per year).
  • Employees who received a base pay increase on 7/1/24 will retain their current base pay rate.
  • Employees who were changed to FLSA eligible (non-exempt) may be moved back to FLSA exempt if they are paid at least $35,568 per year or $683 per week.
  • Second phase, which was to be effective January 1, 2025, would have increased the minimum salary threshold again to $1,128 per week ($58,656 per year).
  • As a result of the ruling, the new FLSA rules will not go into effect on January 1, 2025, and the campus has revised its compliance plans accordingly.

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  • Proposed automatic updates to the minimum salary threshold to occur every three years.
  • The Federal triennial update process will not take place.

Please contact CU ÌÇÐÄVlogÆƽâ°æ HR, hrmail@colorado.edu with questions.

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