The U.S. Department of Labor rescinded the Biden-era overtime rule, restoring the 2019 salary threshold that determines who qualifies for overtime protections under the Fair Labor Standards Act. The Wage and Hour Division announced the change after courts vacated portions of the 2024 rule and after DOL dropped appeals. The rule took effect Friday. The prior 2024 threshold raised the earnings level for overtime eligibility to $844 per week in July 2024, before a planned increase to $1,128 per week on Jan. 1, 2025. With the rescission, employers are again operating under the earlier level of $684 per week, with no automatic triennial adjustments. Although the policy is not specific to higher education, universities and affiliated systems employ large numbers of salaried workers whose classification depends on the threshold plus duties and salary-basis tests. Compliance teams will need to update exemption determinations and payroll planning before annual compensation cycles.
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