Podcast: What You Need to Know About the New Overtime Ruling

Last Updated on November 18, 2024

Chris Cooley sits down with Sr HR Consultant Emily Frederick to discuss what you need to know about the upcoming Overtime Changes.

Update: Federal Judge Overturns Overtime Ruling

On November 15, 2024, Judge Sean D. Jordan of the US District Court for the Eastern District of Texas struck down the Department of Labor overtime ruling nationwide. The first phase of the rule increased the salary threshold from $35,568 to $43,888 in July 2024 and the second phase was set to increase it again in January 2025 to $58,656. Per Reuters, the salary threshold will revert back to the previous salary threshold of $35,568.

The Department of Labor can seek a review of the ruling in the New Orleans-based 5th US Circuit Court of Appeals. With the change in administration, it is unknown if the Trump administration would continue to pursue the Biden Administration’s ruling.

Timestamps

1:10 Who will this affect?
2:25 How will the salary requirement change? Emily discusses the current salary threshold requirement vs. what the salary threshold will increase to.
4:32 What are the requirements on who is to be paid overtime (nonexempt employee) vs who is not (exempt employee)?
6:40 Explains the “step implementation” process for this ruling.
10:53 What is the process that an employer needs to go through?
12:42 What happens if there is a stay on the ruling?

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