As discussed in our prior post, the U.S. Department of Labor (DOL) issued a final rule earlier this year that increased the salary thresholds required to classify certain employees as exempt from overtime pay requirements under the Fair Labor Standards Act (FLSA). On November 15, 2024, the federal district court for the Eastern District of Texas blocked the rule nationwide just weeks before the second phase of the salary threshold increases were scheduled to take effect. The decision reinstates the salary thresholds in effect prior to the DOL’s 2024 rule, which represent a nearly 65% decrease from the thresholds set in the 2024 rule. Continue Reading Federal District Court Vacates Biden’s DOL Overtime Rule
Abby Rickeman
Abby Rickeman is an associate in the firm’s Washington, DC office. She practices in the employment, institutional culture and social responsibility, and public policy groups. She also maintains an active pro bono practice.
DOL Issues Final Rule Expanding Overtime Eligibility
On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule that increases the salary thresholds required to classify certain employees as exempt from overtime pay requirements under the Fair Labor Standards Act (FLSA). The final rule, applicable to employees who otherwise satisfy the “white-collar” (bona fide executive, administrative, and professional) and “highly compensated” exemptions, is similar to the proposed rule DOL issued last August, although the salary thresholds in the final rule have been increased to align with the latest Census salary data.
The final rule represents a sharp increase—approximately 65%—from the current salary thresholds implemented in 2019 under the Trump Administration. The rule is scheduled to take effect in two phases, with the first phase effective July 1, 2024 and the second on January 1, 2025. Thus, employers have only a small window to determine how the rule will impact their operations and make any necessary adjustments.Continue Reading DOL Issues Final Rule Expanding Overtime Eligibility
New York Employers Beware: New Employment Laws Are In Effect And On The Horizon
New York lawmakers have been busy enacting a number of laws and regulations in 2023 that impose new requirements on employers, several of which have recently taken effect. New York employers may need to update their policies, agreements, and practices to comply with the new laws, as summarized below.Continue Reading New York Employers Beware: New Employment Laws Are In Effect And On The Horizon