You may have heard that earlier this year, the Department of Labor (DOL) issued a new rule that expands overtime eligibility by raising the salary threshold. Effective July 1, 2024, the threshold was increased from $35,568 to $43,888, and was set to increase to $58,656 on January 1, 2025. However, on November 26, a federal judge ruled that the DOL overstepped its constitutional authority with this rule, and now the DOL is appealing that decision.

While the court’s decision is being appealed, it’s unclear whether the changes will take effect as planned. If you’ve already made adjustments to your exempt employees’ salaries based on the new threshold, you may be wondering what comes next. You may also be considering rolling back the salary increases you’ve already given now that the DOL rule has been deemed unlawful.

While you can do this, you cannot change the past. In other words, you can’t recoup the wages you already paid, but you can make adjustments to employees’ salaries moving forward. As an employer, it’s important to approach salary adjustments with caution, as these decisions can significantly affect employee morale and potentially lead to contractual or legal complications.

That’s where we come in.

If you’re unsure about the best next steps, we’re here to help. We’ll talk through your options to ensure you’re making the right decisions and avoiding potential legal issues.

No matter what direction you take, we at Loutel are here to guide you. To get in touch with us, call 215-464-6007 or email us at info@loutel.com.