DOL Overtime Ruling Blocked

(July, 2024) Last month, the U.S. District Court for the Eastern District of Texas blocked the enforcement of the U.S. Department of Labor’s (DOL) final rule to raise the minimum salary thresholds for the white-collar overtime exemptions.

The judge in the case issued a temporary restraining order blocking implementation of the rule for Texas state employees only. For the rest of the employer community, the rule goes into effect July 1. Click here to read the final rule.

In April, the DOL put into effect a regulation that would make approximately 4 million additional workers in the U.S. eligible for overtime pay. Under the finalized rule, most employees making less than $43,888 annually will be owed time-and-a-half wages when they work more than 40 hours in any single workweek. Prior to this ruling, the overtime threshold was $35,568. For highly compensated employees, the threshold increases from $107,432 to $132,964 annually.

As of January 1, 2025, the salary threshold will increase again to $58,656 and $151,164 for highly compensated employees.