Big news for HR and payroll pros! The federal court just struck down the planned increases to salary thresholds for white-collar overtime exemptions. This means we're sticking with the 2019 threshold of $35,568 annually for now. This ruling emphasizes the importance of the duties test in determining exemption status, with salary being a supporting factor. If you’ve already made changes in anticipation of the increases, now might be a good time to reassess. Labor laws are always evolving, so staying informed is key!
?? Big News on Overtime Rules + What You Need to Know ?? Here’s an important update that could affect your business or your team’s payroll policies. A federal court recently struck down the Biden administration’s proposed increases to the salary thresholds for white-collar overtime exemptions. If you were prepping for the changes slated for July 2024 and January 2025, hold tight—they’re not happening anymore. Here’s the scoop: - The court ruled that the planned increase to $43,880 (July 2024) and $58,656 (January 2025) was too drastic and would have shifted focus away from job duties to just salary. - For now, we’re sticking with the 2019 threshold of $35,568 annually ($684 per week). - The automatic salary increases every three years? Those were struck down too. Why does this matter? The court’s decision reinforces that the duties test is the key player in determining exemption status, with salary thresholds being a supporting factor. If your company adjusted salaries or reclassified employees in preparation for the increases, you might need to reassess your next steps—just be mindful of employee relations before making any changes. And don’t forget to keep an eye on the duties test for exempt roles; it’s always worth double-checking compliance. This is a big win for businesses navigating compliance, but it’s also a reminder of how quickly labor laws can change. Have questions? Let’s chat at [email protected]!