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Friday, June 20, 2025

DOL Reconsiders 2024 Overtime Rule amid Ongoing Legal Challenges - SHRM

A federal court has stayed proceedings in litigation over the 2024 overtime rule while the U.S. Department of Labor (DOL) reconsiders the regulations. The department asked the 5th U.S. Circuit Court of Appeals for the stay in the case it appealed in February. The court agreed on April 29 and required the agency to file a status report with the court every 60 days.

“While there is speculation that the DOL might withdraw the appeal and issue its own overtime rule, it remains to be seen how the DOL will proceed,” said Natalie Bare, an attorney with Duane Morris in Philadelphia. “There are several potential approaches the DOL could take. Employers may not be able to safely exit the overtime rule roller coaster quite yet.”

Given the continued uncertainty, employers that implemented changes to employees’ salary levels or exempt statuses in response to the July 2024 increase to the standard salary threshold for white-collar overtime exemptions should seek the assistance of counsel if they are considering reverting to the salary levels and exempt statuses they used before the first increase under the 2024 rule, Bare said.

2024 Rule

The 2024 rule implemented two increases to the standard salary threshold, and the U.S. District Court for the Eastern District of Texas invalidated both.

The first increase, which went into effect July 1, 2024 — and which many employers had implemented by the time it was invalidated in November 2024 — raised the standard salary level from $684 per week...



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