BMA FINANCIAL: Department of Labor Reversal . . . Again!

By Mark Bradley, Insurance Services • BMA Financial

      In a repeat of 2016, a federal court issued a ruling vacating the Department of Labor’s 2024 increased salary thresholds for exempt (salaried) status in November. The Department of Labor’s earlier 2024 increased requirements for exempt status of $43,888 (7/1/24) and $58,656 (1/1/25) have been completely rolled back to the prior 2019 level of $35,568.

      This means that any employees who were transitioned from salaried (exempt) to hourly (nonexempt) on 7/1/24 should be transitioned back to their prior salaried (exempt) status as long as their salary is at least $35,568.

      To the obvious question of “Will this change again anytime soon? The only real answer is… maybe. Variables in play include the Department of Labor’s appeal of the federal court’s decision and, of course, a new incoming administration, which most feel will also have a say in what happens next.

      As a reminder, to be considered as an exempt (salaried) worker, employees must:

      • Be paid on a fixed salary of at least $684 per week ($35,568 annually) and

      • Perform executive, administration or professional roles.

      Interested in learning more? We’re here to help. BMA Financial Insurance Services is your trusted partner that can help bring clarity and understanding to your situation. Let us help explain your options. We focus on educating our churches and pastors to help them make well-informed decisions about these important topics. Let us serve you today!

      Contact me at (501) 499-4205 or mbradley@bmaamerica.org.