The DOL may appeal the district court ’ s decision . However , with a new presidential administration in January , the DOL will have a new leadership , and it may abandon any appeal . What the Trump administration will do with the proposed rule is unknown . It could repeal it entirely , revisit some or all the proposed rule , or adopt a different approach altogether . •
REGULATION
FEDERAL JUDGE STRIKES DOWN OVERTIME SALARY THRESHOLDS written by Beth Smoller , KAIA
On Friday , November 15 , 2024 , a Texas federal court judge struck down the U . S . Department of Labor ’ s proposed overtime salary thresholds .
U . S . District Court Judge Sean Jordan vacated the DOL ’ s proposed rule , opining it “ exceeds the Department ’ s authority and is unlawful .” Judge Jordan had previously granted a preliminary injunction preventing the thresholds from going into effect , but the injunction was limited solely to the Texas state government . Jordan ’ s ruling on Nov . 15th has nationwide impact due to the nationwide scope of the proposed rules , meaning the salary thresholds do not apply to any employees ( except those in states where salary threshold is already higher ).
The proposed thresholds increased the annual salary from $ 35,568 to $ 43,888 effective July 1 , 2024 and from $ 43,888 to $ 58,686 on Jan . 1 , 2025 . Judge Jordan ’ s ruling takes the salary threshold back to the $ 35,568 level that was in place prior to July 1 , 2024 . His ruling also invalidated the DOL ’ s “ escalator ” provision that would have increased the salary thresholds every three years .
What does this mean for your agency ? Before reversing any salary changes you made , I would recommend checking with an employment law attorney ( you knew I would say that ). Some states already have salary thresholds that exceed the Fair Labor Standards Act threshold .
The DOL may appeal the district court ’ s decision . However , with a new presidential administration in January , the DOL will have a new leadership , and it may abandon any appeal . What the Trump administration will do with the proposed rule is unknown . It could repeal it entirely , revisit some or all the proposed rule , or adopt a different approach altogether . •
Beth Smoller is the COO & General Counsel of KAIA . A graduate of Kansas State University , Beth also received her Juris Doctor from the University of Kansas .
28 KANSAS INSURANCE AGENT & BROKER