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Quade | Salary Bumps No Longer Required in the New Year After Federal Court Decision

January 21, 2025 – Quade Blog
Portrait of Kayla Ernst

Heading into the holiday months of 2024, employers faced the difficult decision of whether they would either: (1) increase the salaries of certain employees that were classified as exempt from overtime pay and who made less than 58,656 annually, or (2) convert those employees to non-exempt status and start paying them overtime as of January 1, 2025. This dilemma arose from a new Overtime Rule issued by the Department of Labor (DOL) in 2024 that increased the minimum salary thresholds required for employees to meet the executive, administrative, or professional (EAP) employee exemptions from the overtime requirements of the Fair Labor Standards Act (FLSA). Then, on November 15, 2024, a federal court struck down the Overtime Rule nationwide.

Click here to read the full article written by Kayla Ernst published in Quade's blog.

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