On November 15, 2024, U.S. District Judge Sean Jordan in Texas vacated the Department of Labor’s 2024 overtime rule, which had increased the salary threshold for white-collar exemptions to $58,656 and was supposed to be in effect on January 1, 2025. This decision reinstated the previous threshold of $35,568 per year.
With this ruling, the qualifying salary for these exemptions remains at $35,568 annually. To qualify, employees must meet both the salary threshold and specific job duty criteria; otherwise, they are entitled to overtime pay (time-and-a-half) for hours worked beyond 40 per week.
While the Biden Administration could appeal, the incoming Trump Administration may choose to revoke the rule or drop any appeals altogether.
Key Takeaway: Employers should continue adhering to the $35,568 minimum salary and ensure employees meet exemption duties to maintain compliance.
Questions? Please contact Achilles Group HERE or call 281-469-1800.
