Fifth Circuit Reminds Employers To Follow Salary Basis Test or Lose FLSA Overtime Exemptions

On May 24, 2024, the US Court of Appeals for the Fifth Circuit in New Orleans, which covers Louisiana, Mississippi, and Texas, recently upheld a district court’s decision that two highly compensated IT engineers were not properly paid on a salary basis and, therefore, not exempt from the Fair Labor Standards Act’s (FLSA) overtime requirements. The Fifth Circuit’s opinion reiterates that no matter how much money an employee earns, a guaranteed weekly salary must be paid in accordance with the FLSA’s specific rules and regulations in order to maintain most exemptions from the overtime pay requirements. READ MORE