01/13/2025
In June, we reported that the Department of Labor approved increases to the required salary to be classified as exempt from overtime â one that was effective on July 1, 2024 and another that might have been effective this month. However, on November 15, 2024, their final rule was overturned by the United States District Court of the Eastern District of Texas. The U.S. Small Business Administration Office of Advocacy reports, âUnder the order, the minimum salary threshold will revert to $35,568, or $684 per week.â If your company already took actions to comply with the salary increase that was considered approved in July 2024 and is considering revoking those changes, we recommend first consulting with your employment attorney.
*It's important for employers to keep in mind that some states have minimum salary levels that are higher than the federal standard, such as Alaska, California, Colorado, Maine, New York, and Washington. Complying with federal, state, and local law is like trying to hit a fast-moving target, especially for small businesses without the bandwidth to hire in-house HR staff. Consider partnering with Minito HR Solutions in 2025 to be your HR provider for all things compliance and much more.
Source:
U.S. Small Business Administration Office of Advocacy
Federal Court Strikes Down Labor Departmentâs Overtime Rule, Rejecting $44K and $59K Salary Thresholds
December 17, 2024
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