News & Analysis as of

Highly Compensated Employees

Holland & Knight LLP

IRS Proposes Key Changes to Roth Catch-Up Contributions Under SECURE 2.0

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The IRS has issued proposed regulations that clarify and implement catch-up contribution changes introduced by the SECURE 2.0 Act of 2022. Although these changes affect various forms of retirement plans, including 401(k),...more

Foley & Lardner LLP

Tricky Compliance Issues for Companies When an Executive Terminates Employment: Executive Severance Plans

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Executive employment relationships are rarely permanent. When an executive or other senior-level employee terminates employment, companies often must deal with difficult tax, equity, and benefits issues that arise in the...more

BakerHostetler

The CHOICE Act: A New Era for Noncompete Agreements in Florida

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As referenced in our blog post discussing notable noncompete changes nationwide, Florida lawmakers are changing how the Sunshine State views noncompete and garden leave agreements....more

BCLP

Prepare Now for Mandatory Roth Catch-Up

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Proposed Treasury regulations relating to catch-up contributions were issued in January of 2025 that include guidance for the mandatory Roth catch-up requirement, which was first provided under section 603 of Division T of...more

Ballard Spahr LLP

Department of Labor to Reconsider Rule Increasing Overtime Salary Thresholds for White Collar and Highly Compensated Workers

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During the Biden administration, the U.S. Department of Labor (DOL) issued a final regulation (the “2024 Rule”) seeking to increase the salary threshold for overtime eligibility for the “white-collar” exemption (also referred...more

Kelley Drye & Warren LLP

Four More Years? Examining the Push for Extended Non-Competes in Florida

Following lobbying efforts by the now Miami-based hedge fund Citadel, Florida governor Ron DeSantis is poised to sign into law a new bill allowing non-compete clauses to extend up to four years for certain employees. Anyone...more

Littler

Sixth Circuit Finds Employee’s Guaranteed Weekly Salary Was Based on Daily Rate, Defeating Exempt Classification

Littler on

Despite an employee’s being highly compensated, the Sixth Circuit reversed a summary judgment order from the district court, finding that even though the pipe inspector was highly compensated, his pay was calculated on a...more

Vedder Price

Sixth Circuit Clarifies Requirements for a Salaried Employee to Be “Paid on a Weekly Basis” Under the FLSA.

Vedder Price on

On April 1, 2025, the U.S. Court of Appeals for the Sixth Circuit issued an important decision in Pickens v. Hamilton-Ryker IT Solutions, LLC regarding what it means to be paid on a “weekly basis” for purposes of the...more

Kaufman & Canoles

ESOPs Benefits & Compensation - Q1 2025 Client Alert

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Happy Spring from the Kaufman & Canoles ESOPs, Benefits & Compensation team! We hope you’re shaking off the winter blues and ready for another round of benefits updates. ...more

Epstein Becker & Green

New York State Proposes Bill to Ban Noncompetes Except for Highly Compensated Workers and in Sales of Businesses

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New York State Senator Sean Ryan recently introduced Senate Bill 4641 (the “Bill”) that proposes to ban noncompete agreements for most New York employees....more

Ice Miller

The Highly Compensated Employee Exemption Under the FLSA - Misclassification of Highly Compensated Employees Can be Costly

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Classification of employees under the Fair Labor Standards Act (FLSA) remains a high-risk area where employers can easily misstep, potentially incurring thousands of dollars in overtime pay, liquidated damages, attorneys...more

Fisher Phillips

4 Tips for Employers After Appeals Court Says Highly Compensated Employee is Entitled to OT Pay

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An appeals court just ruled that a pipe inspector who earned more than $270,000 a year was entitled to overtime pay because he was not paid on a “salary basis.” In its April 1 decision, the 6th Circuit joined the 5th Circuit...more

Constangy, Brooks, Smith & Prophete, LLP

Paid $270,400 per year and still owed overtime? Another court says yes.

On April 1, a U.S. appeals court showed that the salary basis requirement is alive and well, regardless of how highly compensated an employee might be. The decision is a reminder to businesses that simply paying a guaranteed...more

Seyfarth Shaw LLP

How Now, High Five? IRS Issues Proposed Regulations for the Expanded Definition of “Covered Employee” Under Section 162(m) that...

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On January 16, 2025, the IRS issued proposed regulations under Section 162(m) of the Internal Revenue Code of 1986 (the “Code”), which limit the amount of compensation a publicly held corporation may deduct for wages paid to...more

Ruder Ware

Judge Tosses DOL Overtime Increase – What Employers Should Be Considering and Other Wage & Hour Reminders

Ruder Ware on

On November 15, 2024, a federal judge for the U.S. District Court for the Eastern District of Texas struck down the Department of Labor’s (DOL’s) 2024 overtime rule (“Overtime Rule”). This decision came months after the...more

Tarter Krinsky & Drogin LLP

New Year Reminder to Employers: Make Sure Your Exempt Employees Are Being Paid Enough to Maintain Their Status

Starting a new year is a good opportunity for employers to review compensation structures to ensure sure they are paying their employees enough to meet the salary thresholds necessary for an employee to maintain their exempt...more

Fisher Phillips

Colorado Increases Minimum Wage and Salary Thresholds in 2025: Your 5-Step Action Plan

Fisher Phillips on

From the Eastern Plains to the Western Slope, it’s a new year in Colorado, which means new minimum wage and salary thresholds have taken effect across the Centennial State. Below is a summary of important changes to be aware...more

Ervin Cohen & Jessup LLP

Employer Alert: New 2025 Compensation Requirement for Computer Software Overtime Exemption

Ervin Cohen & Jessup LLP on

Effective January 1, 2025, the California Department of Industrial Relations has issued a new compensation threshold for exempt computer software employees, reflecting an increase of 2.5% from last year....more

Pullman & Comley - Labor, Employment and...

Important Update to our Wage Alert Regarding the DOL’s Final Rule Increasing the Salary Level for the Executive, Administrative...

In November, the U.S. District Court for the Eastern District of Texas blocked the U.S. Department of Labor’s (DOL) final rule discussed below.  See Texas v. U.S. Dep’t of Lab., No. 4:24-CV-468-SDJ, 2024 WL 4806268 (E.D. Tex....more

Spilman Thomas & Battle, PLLC

Texas Court Strikes Down DOL Overtime Rule: Analysis and Impact on Employers

On November 15, 2024, in Texas v. United States Department of Labor, a Texas federal district court struck down a U.S. Department of Labor (DOL) final rule that would have raised the minimum salary threshold for exempt...more

BakerHostetler

Is Your Payroll Department Ready to Close Out 2024 and to Start 2025?

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The FLSA’s minimum wage and overtime requirements do not apply to any employee employed in a bona fide executive, administrative, or professional (EAP) capacity, nor do they apply to highly compensated employees who perform...more

Whiteford

Employment Law Update: Court Strikes Down 2024 Overtime Pay Regulations: What Employers Need To Know

Whiteford on

On November 15, 2024, the Eastern District of Texas invalidated the newly established overtime pay regulations issued by the U.S. Department of Labor (DOL) in 2024. These regulations incrementally increased the minimum salary...more

The Wagner Law Group

Overtime Exemption Update: Judge Vacates DOL Rule Increasing Overtime Salary Threshold

The Wagner Law Group on

Exempt or not exempt, that is the question. It is not an easy question to answer, and it did not get any easier to answer when U.S. District Judge Sean D. Jordan vacated the Department of Labor (“DOL”) rule on overtime...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Federal Judge Invalidates Department of Labor's Minimum Salary Increases

On April 23, 2024, the Department of Labor (DOL) issued a Final Rule that significantly increased the minimum salary required for employees to be classified as exempt under the Fair Labor Standards Act (FLSA). Specifically,...more

Cranfill Sumner LLP

Texas Court Tosses Biden Overtime Exemption Rule

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In November, a Texas federal court struck down the Biden Department of Labor’s (DOL) rule that would have made millions of salaried workers eligible for overtime pay....more

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