Why Employers Shouldn’t Wait for Washington to Catch Up
November 15 marks one year since the Department of Labor’s 2024 attempt to raise the Salary Basis Test was halted—preventing a sweeping change to one of the most fundamental (and misunderstood) elements of the Fair Labor Standards Act (FLSA).
That moment was a wake-up call for employers. The FLSA, enacted in 1938, remains largely unchanged—an archaic law written for a workforce that looks nothing like today’s. It was intended as a floor for basic protections, not a ceiling. Yet, in today’s world of hybrid work, gig labor, and digital timekeeping, many employers are still measuring compliance against a statute drafted during the Great Depression.
A Quick FLSA Refresher
The FLSA establishes the federal standards for:
Minimum wage ($7.25/hour since 2009)
Overtime (time-and-a-half after 40 hours/week)
Exempt vs. non-exempt classifications (the Salary Basis and Duties tests)
It does not require:
Paid holidays or time off
Meal or rest breaks
Severance pay or pay for unused time
Yet, many employers mistakenly believe those are federal mandates—or worse, they assume federal compliance equals full compliance.
States Have Raised the Bar
Because the FLSA sets only the floor, many states have enacted more stringent laws to reflect local economies and worker expectations. Here are a few examples:
Salary Basis Requirements for Exempt Employees (2025):
California: $67,080/year (based on $1,290/week for employers with 26+ employees)
New York: $62,400/year (statewide; varies slightly by region)
Washington State: $67,724/year
Colorado: $57,500/year
Maine: $42,450/year
Each of these far exceeds the federal threshold that would have taken effect under the 2024 rule—illustrating how fast states are moving while federal policy stalls.
Minimum Wage Examples (2025):
California: $16.00/hour
New York City: $16.00/hour
Washington State: $16.28/hour
Florida: $13.00/hour
Massachusetts: $15.00/hour
Some states, like Oregon and New York, even tailor minimum wage by region or industry—further complicating compliance for multi-state employers.
Why This Matters to Employers
The FLSA is a protection law—for employees, not employers. Its penalties for misclassification, unpaid overtime, and recordkeeping errors can add up quickly. But compliance today is not just about avoiding fines—it’s about operational clarity, employee trust, and risk mitigation.
The 2024 Salary Basis rule may have been invalidated, but the underlying issue remains: federal standards are out of step with modern employment realities.
How WMC Partners Can Help
At WMC Partners, we view compliance not as a burden, but as an employer protection strategy. Our FLSA and wage-hour audits identify hidden risks before they become costly disputes—especially for:
Multi-state employers
Remote and hybrid teams
Commission-based or professional staff
Businesses undergoing restructuring or acquisition
We help employers:
Audit classifications and pay practices
Reconcile conflicting state and federal laws
Update policies, handbooks, and offer letters
Train managers to recognize wage-hour pitfalls
A Year Later—Don’t Wait for Washington
The federal government may move slowly, but enforcement doesn’t. The FLSA’s framework remains the same, and state regulators are becoming more aggressive every year.
Now is the time for a proactive audit.
Let’s ensure your policies are compliant, your classifications are defensible, and your payroll practices reflect the realities of your workforce—not the assumptions of 1938.