In the world of compliance things move quickly and not always in a linear, straightforward direction. Case in point? Fair Labor Standards Act (FLSA) updates.  

As you may already be aware, in late 2024 the Department of Labor (DOL) filed an appeal when the proposed minimum salary threshold changes were overturned by a Texas federal court decision. Most recently, however, in April 2025, the DOL under a new administration paused this appeal and noted it is reconsidering either a revision or withdrawal of the proposed changes. What does this mean for employers?  Presently, the existing FLSA minimum salary threshold remains at $35,568 annually or $684 a week. 

Where Things Stand  

On a federal level, the DOL has indicated that a potential revision or withdrawal of the proposal is on the table, though there has been no specified timeline to date. However, many states already maintain higher exempt salary thresholds, which would always supersede the federal threshold and remain in place for compliance purposes.   

 How to Prepare  

With a lack of clarity, how can human resource (HR) teams prepare for what’s next? As we await potential updates, it’s important to remain proactive in auditing your organization’s internal job classifications. isolved HR Services strongly recommends conducting an annual review of all job descriptions. This review should encompass key elements such as job duties and responsibilities, educational requirements and any supervisory functions. Doing so ensures that all employees are accurately and appropriately classified. 

Before initiating an FLSA audit, it’s vital to review and update job descriptions. Apply both federal and applicable state exemption criteria to the positions you identify, providing a clear recommendation on exempt or non-exempt status. This includes a formal summary and recommendation for your review and consideration. 

Beyond classification, it’s important to take a more strategic approach to talent management. Market Compensation Reports and the development of salary bands can help your organization to remain competitive in both attracting and retaining top talent. These reports allow you to benchmark your current compensation packages against local and national competitors. From there, make sure salary structures align with your organizational practices and goals. 

Although nobody can predict what’s to come in terms of FLSA revisions, one thing remains certain: maintaining compliance is essential to your business, especially when legislation moves quickly.  

If you need help keeping compliant with shifting FLSA rules, get in touch with isolved HR Services.  

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