Overtime Exemption Salary Increases Invalidated by Federal Judge

On Friday, November 15, 2024, a federal judge struck down the U.S. Department of Labor’s planned January 1, 2025, increase to the white-collar overtime exemption salary basis thresholds. Additionally, this ruling also invalidated the increase that went into effect on July 1, 2024.  As of now, the salary basis threshold has reverted to the 2020 standard of $684 per week ($35,568 annually).

This decision means that employers are not required to implement the January 1, 2025, increase as previously planned. However, any decisions to roll back changes made to comply with the July 1, 2024, increase are ultimately business decisions at the discretion of each organization. 

HR Partners recommends that employers take a cautious approach and consider waiting until the new administration takes office in January 2025 before making any significant changes. While it is likely that any appeal by the U.S. Department of Labor will be defeated, the new administration may propose a limited version of the changes. 

HR Partners is closely monitoring developments and will keep clients updated on any changes.  In the interim, if you have questions about how this decision impacts your organization or need assistance with compliance strategies, we would be pleased to assist. Please contact HR Partners at 785-233-7860.