A federal court overturned the Biden administration's rule that aimed to expand overtime pay eligibility to millions of U.S. workers. The rule, finalized by the U.S. Department of Labor in April 2024, sought to increase the salary threshold for white-collar exemptions under the Fair Labor Standards Act. The judge ruled that the DOL overstepped its authority by focusing solely on salary rather than job duties, deeming the rule invalid. Consequently, the previous salary threshold remains in effect, and employers may need to adjust their compensation practices accordingly. Meanwhile, employees hoping to benefit from the new rule will find themselves ineligible for overtime pay once again. This decision, however, is likely to be appealed, leaving employers and employees uncertain about the future of overtime regulations.
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