Key Takeaways
- This affects employers updating salary increases for January 2025
A Federal Court has blocked a Department of Labor rule increasing the overtime salary threshold for salary-exempt workers. The rule was scheduled to raise the salary threshold to $1,128 per week ($58,656 annually) on January 1, 2025. The now-blocked rule raised the salary threshold to $844 per week ($43,888 annually) earlier this year.
Some employers had to comply with this rule change July 1 of this year. This new decision nullifies the increase, returning the overtime salary threshold to the rate set in 2019, $684 per week ($35,568 annually).
As a reminder, this rule is only for federal purposes. Many states have a separate minimum salary that can be higher than the federal amount.
For further questions, please reach out to your payroll advisor.
Link: Memorandum Opinion and Order, USDC-ED Texas.
We're Here to Help
