Department of Labor Overtime Rule Struck Down

On November 15, a federal judge in Texas struck down the “Overtime Rule” from the U.S. Department of Labor (DOL) that would raise the minimum salary threshold for employees who are classified as “exempt” from payment of overtime wages under the white-collar exemptions to the Fair Labor Standards Act.

Under this DOL rule, the salary threshold requirements for employees to be classified as “exempt” under the “white collar” exemptions increased in stages, the first going into effect on July 1, 2024. The next increase was scheduled for January 1, 2025. For more background about the rule, please read  AHCA/NCAL’s analysis developed when the rule was finalized (login required).

DOL could possibly appeal and try to get the rule reinstated in these few remaining weeks, but the incoming Trump Administration would likely not be in favor of such an appeal.

If you have any questions, please feel free to contact AHCA/NCAL’s Dana Ritchie at [email protected].