We recently reported in an Insight (read it here) on a revised US Department of Labor (DOL) requirement for overtime that would have increased the salary threshold for exempt executive, administrative, and professional (EAP) employees. Fair Labor Standards Act regulations require that certain employees be paid a minimum salary in order to be exempt from minimum wage and overtime requirements.

The law would have expanded overtime pay for an estimated four million salaried employees.

On November 15, a federal judge in Texas blocked that rule, citing that the DOL exceeded its authority by prioritizing employee wages over job duties when determining eligibility. This decision also invalidates the previously required July 1, 2024 increases. As a result, salary level thresholds for overtime for EAP employees returns to $684 per week ($35,568 annually) and $107,432 annually (including at least $684 per week paid on a salary or fee basis) for highly compensated employees.

The Biden Administration may appeal this ruling, but the appeal may not be acted on by the 5th U.S. Circuit Court of Appeals in the next few months. It’s unknown how the Trump administration will consider the overtime rule.

The Labor Department’s rule would have been the largest increase to the overtime threshold in decades.