Last Friday, a federal court struck down the minimum salary threshold rule for certain overtime exemptions under the Fair Labor Standard Acts (FLSA). This not only halted the Jan. 1 increase, but reversed the already-effective July 1 increase, turning back to the salary threshold outlined in the 2019 rule.

What does this mean for employers? As of last Friday, employers need not pay overtime to employees who are paid a salary of at least $684 per week and meet the other requirements under the duties tests for the administrative, professional, or executive exemptions. In addition, employers planning for the Jan. 1 increase need no longer do so. 11/15/2024