REMINDER: New DOL Overtime Rule Struck Down by Court

The new overtime rule from the Department of Labor was found to be invalid by a district judge on November 15, 2024. In his ruling, District Judge Sean Jordan set aside the current and future increases on the basis that the DOL had exceeded its designated authority by effectively removing the Duties Test of the FLSA and replacing it with an amended Salary test.  

Recent History: This proposed rule by the DOL had more starts and stops than a DC cab driver, but it has finally been stopped once again. Enactment of this rule would have dramatically increased labor costs by forcing employers either to pay overtime to more employees (estimated to number about 4 million nationwide) or to increase currently exempt employees’ pay to the new thresholds. The first pay increase, scheduled for July 1, was previously halted temporarily, pending further developments. Those developments have now transpired, voiding the July 1 increase, a scheduled January 1, 2025 increase, and triennial indexed increases after that.  DOL may well appeal the ruling.