Federal Court Vacates 2024 Overtime Rule

Posted By Brandy King
November 21, 2024 Category: FLSA, DOL, Overtime Rule, White Collar Exemption, Wage And Hour

Toward the end of 2023, we advised our readers that changes would be coming to the FLSA white-collar overtime exemption threshold. The first change took place in July 2024, raising the minimum salary for overtime exempt employees from $35,568 to $43,888. Employers scrambled, crunched numbers, and made the necessary adjustments to comply with this new legislation. The plan was to raise that minimum salary again in January of 2025 to $58,656. Many employers had already made arrangements to be compliant with the new figure as of 1/1/25.   However, on November 15, 2024, a federal court in Texas issued a decision vacating the ruling, which reverts the minimum salary threshold to $35,568. We’ve received a lot of questions on this, so we want to clarify – this change applies to employers nationwide. Regardless of the state the hearing may occur in, it is still a federal court and a federal judge.  The court stated in their lengthy opinion on the matter that the Department of Labor (DOL) had overstepped their authority in determining the amounts of these increases. This essentially kicks it back to the DOL to rethink their rule.  DOL may choose to appeal this ruling, and we will keep you updated on any changes. As for now, the increase planned for January 1, 2025 will not take effect. If you have questions or concerns about how these changes may impact your company, don’t hesitate to reach out to your team at