1 min read Overtime

Breaking News: DOL Salary Rule Struck Down

Federal Court Strikes Down Rule Raising Minimum Salary for Overtime Exemptions

A federal court in Texas has found the U.S. Department of Labor's overtime exemption salary increases to be unlawful and invalid. The rule raised the "white collar" overtime exemption minimum salary to $43,888 in July and was set to increase it to $58,656 on January 1, 2025. The ruling has nationwide effect, and is likely stand, because it doubtful that the new administration will pursue an appeal.

Employers are now free to reduce salaries of exempt personnel to the old threshold of $35, 568 if they choose, although this might not be the best approach from an employee relations standpoint.

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