Advocacy News – Nov. 21, 2024
What happened: On Nov. 15, A federal judge in Texas permanently blocked a Biden administration rule that took effect in July with the goal of making more salaried U.S. workers eligible for overtime pay. The court criticized the U.S. Department of Labor (DOL) for improperly basing eligibility for overtime pay on workers’ wages rather than their job duties.
Why it matters: The rule would have required employers to pay overtime premiums to salaried workers who earn less than $1,128 per week, or $58,656 per year, when they work more than 40 hours in a week, beginning Jan. 1, 2025, and it had temporarily raised the threshold to about $43,880 per year on July 1. The ruling means the previous threshold of $35,568 ($684 per week), which was set in 2019, is now back in effect.
What’s next: The DOL may seek to appeal the District Court’s ruling; however, even if the DOL appeals the ruling, the incoming Trump administration is expected to abandon the appeal.
-
Employers should monitor the situation for updates.
-
Employers wishing to untangle changes already made are encouraged to seek legal counsel.
Go deeper: Read a full update on this issue written by our friends at Barnes & Thornburg LLP.