DOL Exemption Changes Struck Down by a Federal Judge

The Department of Labor’s new and planned rules intended to raise the salary threshold for overtime exemption have been stopped by a federal judge.

What that means:

1. Current Threshold Remains Around $35K: The increase to $44K (July 2024) and the planned increase to $59K (January 2025) are canceled for now. Automatic raises every three years are also blocked.
2. Reason for the Halt: The court ruled that the Department of Labor (DOL) overstepped its authority by focusing too much on salary instead of job duties when deciding who is exempt from overtime.
3. What’s Next: The DOL may appeal, but the new presidential administration (Trump, starting January 2025) is unlikely to fight for the rule.
4. For Employers:
   • If you’ve already raised salaries or reclassified jobs, consider the impact on morale before rolling back.
   • If you haven’t made changes, hold off until there is more clarity.
   • Consider reviewing roles and consulting with us prior to making any additional changes.

This decision requires each employer to continue thoughtful planning to manage employee expectations and legal obligations.