In November, a federal district court judge struck down the rule mandating overtime pay for employees earning less than $58,656 annually or $1,128 weekly. This rule, which took effect on July 1, 2024, and was set to increase on January 1, was deemed improper as it based eligibility on wages rather than job duties. 

As a result, the federal overtime threshold under the Fair Labor Standards Act (FLSA) reverted to $684 per week or $35,568 per year, the rate set during the first Trump administration. The U.S. Department of Labor has announced that it is enforcing the $684 per week overtime threshold. DOL has appealed the decision, but it is unclear what steps the incoming Trump administration may take, such as dropping the appeal.  

The decision provides flexibility for employers. Please note that an employee that meets the $684 per week threshold must also meet one of the duties tests to be exempt from overtime. Click here to learn more about the duties tests under the FLSA.