The U.S. District Court for the Eastern District of Texas vacated the Department of Labor’s overtime rule that significantly increased the salary threshold. This ruling applies nationwide.
In its ruling, the court criticized the rule’s rise in the salary threshold level as displacing the duties test for white-collar exemptions by being too steep.
In light of the court’s decision, the minimum salary threshold is once again set to $35,568, and the threshold for “highly compensated employees” (those employees subject to a more streamlined “duties test”) is set to $107,432.
Please contact your HR professional or attorney for further questions and assistance.
You can read more about the ruling in this article from the Society for Human Resource Management (SHRM) here.