HR News - DOL Pauses Appeal of Overtime Exemption Rule

The U.S. Department of Labor (DOL) has filed an unopposed motion to hold in abeyance two appeals concerning its controversial overtime exemption rule, pending a policy review by the incoming administration.

The rule, which aimed to raise the salary threshold for "white-collar" exemptions under the Fair Labor Standards Act (FLSA), was struck down by federal district courts in Texas. The courts ruled that the DOL exceeded its authority by prioritizing salary over job duties in determining overtime eligibility. The DOL had planned to increase the salary threshold to $58,656 annually, up from the previous $35,568, potentially extending overtime pay to millions of salaried workers.

In its motion, the DOL requests that the appeals be paused while the new administration, which took office on January 20, 2025, reconsiders the rule. The department has committed to providing status updates to the court every 60 days during this period.

The motion is unopposed, and the court is expected to rule on the request in the coming weeks.

This development adds to the ongoing legal and policy debates surrounding worker classification and overtime protections, with significant implications for employers and employees nationwide.
 

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