The decision means the minimum salary threshold for overtime exemption that went into effect on July 1 is now void. Additionally, the threshold increase that was to take effect Wednesday, Jan. 1, 2025, is also now void.
The DOL released its final overtime rule which expands overtime protections increases the minimum salary thresholds required to exempt a salaried bona fide executive, administrative, or professional employee (EAP) from federal overtime pay requirements.
The Fair Labor Standards Act requires employers to pay employees a minimum wage for all hours worked and a time-and-a-half overtime rate for all hours worked over 40 in a work week. However, it provides certain exemptions.
While the issue of whether employees are properly classified as exempt is always an issue that could potentially arise, exempt status is more likely to be called into question if and when the Department of Labor (DOL) goes forward with a proposed increase in the salary amount required to qualify as exempt. It has been reported that such a proposed rule could be issued in early 2019.