FOS recently described the new regulations which increased the minimum salary threshold for overtime pay for salaried workers. https://foslaw.com/wp-content/uploads/2024/08/Summer-2024-Newsletter.pdf
On November 15, 2024, a federal court in Texas struck down the new rules, holding that the Department of Labor went beyond its authority in issuing the regulations.
The regulations would have raised the minimum salary threshold from $684 to $884 per week, allowing individuals earning a salary up to approximately $44,000 to be eligible for overtime compensation. Additionally, effective January 1, 2025, the minimum salary threshold would again increase, this time to $1,128 per week or approximately $58,656 a year.
The federal court’s striking down the regulations halts them from taking effect, such that the salary threshold for overtime pay, at least for now, will revert to the prior level of $684 a week or approximately $34,000 a year.
The decision can be appealed. Given the change in administrations, however, an appeal is not uncertain, if not unlikely.
Contact your FOS attorney with questions regarding the regulations or overtime issues.
Photo: cms.nar.realtor
