November 26, 2024
UPDATE: U.S. DOL Appeals Federal Judge’s Ruling That Blocked Overtime Rule
You may recall from the prior story on November 15th that a federal judge in Texas struck down the overtime rule issued by the U.S. Department of Labor (DOL). The rule took effect July 1st and raised the salary threshold for overtime eligibility from $684/week to $844/week. The next increase was scheduled for January 1, 2025, and would have increased the minimum threshold to $1,188/week.
The DOL website reads, “Consequently, with regard to enforcement, the Department is applying the 2019 rule’s minimum salary level of $684 per week and total annual compensation requirement for highly compensated employees of $107,432 per year. Lawsuits regarding the 2024 final rule are currently pending in two other federal district courts, and the United States has filed a notice of appeal from the November 15 decision. The Department will update this notice with additional information as it becomes available.” (emphasis added)
What impact will the new Administration have on these pending cases? Only time will tell. Incoming President Donald Trump has nominated Lori Chavez-Deremer to serve as DOL Secretary. That nomination requires confirmation by the Senate.
While you are waiting. Remember there are at least 19 states that have their own overtime rules that may be stricter than the federal rules. Talk to your company’s employment counsel to ensure you are complying with those, as well.
