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.; Under the H.R. 1 law: ;The definition of qualified expenses (those for which 529 funds may be used without tax repercussions) for K-12 education was expanded to include more than just tuition — now encompassing costs like books, materials and testing fees.

If improper deductions were made, the salary basis test will not be met and the exemption will be lost .; ;Primary duty.

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For national organizations, having an effective sick leave policy should serve as a significant benefit over the next couple months and organizations that don’t have one in place will likely be tested.

“These are absolutely test cases,” Mordy said.

However, that ruling reinforced guardrails that the agency cannot set a salary threshold so high that it effectively negates the duties test of exempt status, which is a formal callout from the FLSA.

.; ;Examine and test how your systems measure skills proficiency.

.; For an employee to be exempt, that person must meet specific salary-basis and duties tests for: ;Executive, administrative or professional (EAP, or otherwise known as “white collar”) employees;; ;Outside sales or computer employees; and/or; ;Certain highly compensated employees .; To be considered exempt, employees must: ;Be paid a salary that meets the DOL’s salary-level requirements ;; ;Be paid on a salary basis; and,; ;Have primary job duties that fit one of the exemption categories.; The Minimum Wage Component The FLSA requires employers to pay covered, nonexempt employees at least the minimum wage.

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Dynamic governance components include: ;Real-time market monitoring with a “finger on the pulse” understanding of current situations, when lacking formal sources;; ;Scenario planning and periodic stress-testing of salary budgets;; ;Clear frameworks on when to trigger COLA, USD pay or salary reviews; and,; ;Cross-functional collaboration between TR and its colleagues in legal, finance and treasury.; Organizations that navigate this well are emphasizing transparency, data-backed decision-making and legal defensibility.