Overtime Rule Blocked by Court

According to this article, in November 2024, the Federal District Court for the Eastern District of Texas issued a ruling striking down the United States Department of Labor’s 2024 regulation that had increased the minimum salary levels required to support exempt status under the Fair Labor Standards Act (FLSA). The Judge’s order invalidates the rule nationwide. The order further invalidates the entire 2024 rule, a portion of which went into effect for most of the country in July 2024.

Given the upcoming change of presidential administration, employers should continue to monitor this issue. For now, employers should note that, absent further developments:

• The upcoming additional increase of the minimum weekly salary amount to $58,656, which had been scheduled for January 1, 2025, will no longer go into effect; and
• The applicable minimum salary requirement for exempt status reverts back to the level stated in the 2019 version of the rule: $684 per week ($35,568 annually). 

Read more about this action.

Posted in HR Law |Comments Off on Overtime Rule Blocked by Court