Late last week, the U.S. District Court for the Eastern District of Texas struck down the U.S. Department of Labor’s 2024 overtime rule. The rule had increased the salary threshold for certain overtime exemptions under the Fair Labor Standards Act (FLSA). This strike-down applies nationwide.
The 2024 overtime rule had increased the minimum weekly salary for most overtime-exempt employees starting this past July, with additional increases set to take place January 1, 2025, and every three years thereafter.
This means that the increases required in July of this year to maintain exempt are moot, and employers need not increase salaries again in January 2025.
The minimum salary now returns to $684 per week or $35,568 annually, the rates in effect prior to this ruling.
While the Department of Labor may appeal the ruling to the 5th Circuit Court of Appeals, it is unlikely that the incoming administration would support an attempt to revive the rule.
We expect a lot of changes in the months to come and are ready to keep you informed! Contact us about this or any other workplace law matter.