On November 15^th, a federal judge in Texas blocked a recent 2024 rule that would have expanded access to overtime pay to millions more salaried workers across the U.S.

The Labor Department’s blocked rule would have required an increase in the minimum salary provided to exempt employees, increasing the amount from $43,888 (set in July this year) to $58,686, annually. Now, the previous threshold of $35,568, which dates back to 2019, will be back in effect.

Additionally, “Highly Compensated Employees” (HCEs) would have had to be paid at least $151,164, but now will drop back down to the previous amount of $107,432.

As of now, it is unknown if the Labor Department will attempt to appeal the decision to overturn the rule. The appeal could take several weeks, if not months, to work its way through the system, and will likely face an uphill battle with the new administration.

If you are unsure how this rule reversal will impact your employees, or need a plan of action, The Employer Group can help!

 

 

This information does not constitute legal advice.