© 2025 American Payroll Institute, Inc.
March 7, 2025 Volume 33 Issue 3
Full 5th Circuit Will Not Revisit ‘White Collar’ Ruling
On February 14, the 5th Circuit Court of Appeals denied
a petition requesting a rehearing by the full panel of
circuit judges of a case determining the U.S. Department
of Labor’s (DOL) authority to increase the minimum salary
levels for the Fair Labor Standards Act (FLSA) executive,
administrative, professional, outside sales, and computer
(EAP) employees or “white collar” exemption in its final rule
[Mayfield v. U.S. Department of Labor, No. 23-50724 (5th Cir.,
2-14-25)]. The court’s reply states: “Because no member of
the panel or judge in regular active service requested that
the court be polled on rehearing en banc, the petition for
rehearing en banc is DENIED.”
In September 2024, a unanimous three-judge appellate
panel agreed with the district court that increasing the
minimum salary for exempt employees falls within the
DOL’s explicitly delegated authority to define and delimit
the terms of the “white collar” exemption and is not an
unconstitutional delegation of legislative power (Mayfield
v. U.S. Department of Labor, 117 F.4th 611 (5th Cir., 9-11-24)
see PAYROLL CURRENTLY, Issue 10, Vol. 32).
Mayfield appealed, and the February 14 order is the
response to his appeal.
Rule was invalidated in November
On November 15, 2024, a district court vacated and set
aside the DOL’s final regulations to increase the minimum
salary level for the FLSA EAP exemptions (Texas v. U.S.
Department of Labor, No. 4:24-cv-499, 2024 U.S. Dist. LEXIS
207864 (E.D. Texas, 11-15-24) see PAYROLL CURRENTLY, Issue
12, Vol. 32).
The ruling to set aside the regulations applies on a
nationwide basis, and the minimum salary level reverts to
the previous threshold set in 2019: $684 per week ($35,568
per year). The threshold for highly compensated employees
(HCEs), which also would have been increased under the
2024 rule, reverts to the previous threshold of $107,432 per
year.
The district court referred to the 5th Circuit Court
of Appeals’ ruling in Mayfield when it said that the terms
“capacity, executive, administrative, and professional” all
relate to an employee’s functions or duties, but the meaning
of these terms guides and limits the DOL’s power to define
and delimit them. The district court continued to quote
Mayfield when it said the DOL “cannot enact rules that
replace or swallow the meaning those terms have.”
More appeals in the 5th Circuit
On December 4, 2024, the DOL filed a notice of appeal
in the 5th Circuit in the Texas case. The district court reached
a different conclusion than the three-judge appellate panel
in the same circuit did in Mayfield, which unanimously
determined the 2019 rule increasing the minimum salary
Full 5th Circuit Will Not Revisit ‘White Collar’ Ruling. ................1
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