On November 15, 2024, a federal judge in Texas vacated the overtime exemption rule for white-collar workers. In July 2024, the rule increased the exemption to $844 per week ($43,888 annual) and the Department of Labor was on schedule to raise it again on January 1, 2025.

However, because of this decision, the July 2024 minimum is no longer effective and the January 1, 2025 increase will also not occur. The minimum salary level will revert to the $684 per week ($35,568 annual) which are pre-2024 levels.

The rule applies nationwide to all employers and was overturned citing that, in this rule, the DOL may use salary to define exemptions, but it can’t be so high as to displace the duties test for exemptions.

The rule has also been vacated for highly compensated employees, which has been set to rise to $151,164 annually on January 1, 2024 and will revert back to the minimum of $107,432 annually. The decision also applies to the annual raises that were set for 2027.