On November 26, 2024, the U.S. Department of Labor (DOL) filed a notice of appeal seeking to reverse a federal district judge’s recent ruling striking down the agency’s increase in the minimum salary thresholds for exemption from overtime requirements. The district court’s action left the minimum salary threshold at the levels set by DOL in 2019.
The agency’s appeal of the November 15, 2024 decision by a Texas federal judge holding that the DOL had overstepped its authority in raising the minimum salary requirements for exempting certain employees from federal overtime requirements was expected. The DOL’s rule had phased in the increases, with the first round of increases to occur in July and the second round set to occur in January 2025.
The outcome of the 2024 presidential election has almost certainly meant that the appeal will not result in reinstatement the DOL’s 2024 rule. Most legal commentators expect that the new presidential administration will end the issue by choosing to drop the appeal in the first months of 2025.