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Tuesday, June 17, 2025

Overtime Rule: Latest Update on Paying Exempt Employees - HRMorning

The rollercoaster ride continues as federal regulators reevaluate the current overtime rule and what it means to meet the salary level test.

In 2024, the Biden administration’s Dept. of Labor (DOL) finalized a rule that aimed to dramatically increase the salary threshold for exempt employees. But the rule met with strong resistance from business groups and other stakeholders who took legal action against it.

The latest development: On April 24, 2025, the DOL filed an unopposed motion to hold appeals in abeyance. That’s not a surprising move, now that the DOL is under the control of the Trump administration, with its pro-business stance.

The Fifth Circuit Court of Appeals granted a stay of litigation. However, it lasts for only 120 days. So the clock is ticking, and employers may soon see more changes.

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2 Overtime Rule Cases

Back in 2024, the cases the federal appeals court had agreed to hear – State of Texas v. Department of Labor and Flint Avenue LLC v. Department of Labor – came from two district courts in Texas. Those two rulings were favorable to employers.

At issue in the cases, and others like them, was whether the DOL overstepped its bounds when it raised the salary level to such a high...



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