Employment / 1 min read
A federal judge in Texas has struck down the Biden Administration’s new overtime rule. The rule raised the minimum salary for the white-collar overtime exemptions (professional, executive, and administrative) to $43,888 on July 1, 2024, and was set to raise the minimum salary level to $58,656 on January 1, 2025. The court’s order brings the qualifying salary level for exemptions back down to $35,568 per year.
Employees falling within this exemption will still have to be paid a minimum salary of $35,568 and perform the duties related to a special white-collar exemption. If they do not meet both these requirements, they will have to be paid time-and-a-half for all worked hours over 40 in any given work week.
The Biden administration can appeal the ruling, but with President Trump coming back into office within two months, the incoming administration can simply revoke the rule or withdraw the appeal.