{"id":2353,"date":"2025-03-03T16:43:55","date_gmt":"2025-03-03T16:43:55","guid":{"rendered":"https:\/\/forework.com\/?p=2353"},"modified":"2025-03-03T16:43:58","modified_gmt":"2025-03-03T16:43:58","slug":"updates-to-decision-invalidating-2024-overtime-rule","status":"publish","type":"post","link":"https:\/\/forework.com\/updates-to-decision-invalidating-2024-overtime-rule\/","title":{"rendered":"Updates to Decision Invalidating 2024 Overtime Rule"},"content":{"rendered":"\n
On November 15, 2024, the United States District Court for the Eastern District of Texas in State of Texas v. United States Dep\u2019t of Labor<\/em> held that the U.S. Department of Labor (DOL) exceeded its rulemaking authority when it released its updated federal overtime rule in April 2024 increasing the minimum salary for exemption as an executive, administrative, or professional (\u201cEAP\u201d) employee under the Fair Labor Standards Act from $684 per week ($35,568 annualized) to $844 per week ($43,888 annualized) effective July 1, 2024 and to $1,128 per week ($58,656 annualized) effective January 1, 2025. The DOL\u2019s new rule also increased the minimum total annual compensation level for exemption as a \u201chighly compensated employee\u201d (i.e., one who customarily and regularly performs any one or more of the exempt duties or responsibilities of an EAP employee) and provided for automatic triennial increases in the minimum compensation levels for exemption beginning on July 1, 2027.<\/p>\n\n\n\n The Court\u2019s November 2024 decision declared the DOL\u2019s rule an \u201cunlawful exercise of agency power\u201d and vacated it nationally. The DOL filed an appeal with the United State Court of Appeals for the Fifth Circuit. However, after President Trump took office, the DOL requested a 30-day extension of time, through March 7, 2025, to file its opening brief on appeal. We do not anticipate that the DOL will make future filings under the Trump administration challenging the DOL\u2019s authority; perhaps at most there will be a stipulation withdrawing the DOL\u2019s appeal.<\/p>\n\n\n\n Beginning July 1, 2027, and every three years thereafter, the DOL will implement further increases in the minimum salary for exemption as an EAP employee and the minimum annual compensation level for exemption as a highly compensated employee, tied to current earnings data. Employers should determine which employees will be impacted by the new thresholds, consider whether they will increase their salaries to the new minimum or reclassify them to overtime-eligible, and if they do reclassify certain employees to overtime-eligible, consider their supervisor\u2019s management of the overtime costs and have a clear understanding of what hours are considered \u201chours worked\u201d. If you have any questions about the subject of this article and its implications for your business, please contact your Forework HR representative.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" On November 15, 2024, the United States District Court for the Eastern District of Texas in State of Texas v. United States Dep\u2019t of Labor held that the U.S. Department of Labor (DOL) exceeded its rulemaking authority when it released its updated federal overtime rule in April 2024 increasing the minimum salary for exemption as an executive, administrative, …<\/p>\n","protected":false},"author":1,"featured_media":2354,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","content-type":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment-articles"],"yoast_head":"\n