Our May newsletter informed our readers that the U.S. Department of Labor had amended the threshold for exemption from overtime for salaried employees. Salaried professional, executive, or administrative duties would be eligible for overtime if they earned less than the limits set by regulation, limits that automatically increased over time. On November 15, 2024, the Eastern District of Texas invalidated the new rules, a ruling with nationwide effect. The first increased limit went into effect on July 1, 2024. With the new nationwide ruling, you are no longer required to reclassify workers as non-exempt or increase salaries. It is unlikely that the incoming presidential administration will pursue appeal.
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