LEGAL ALERT
A federal district judge in Texas recently invalidated the Labor Department’s overtime rule that sought to raise the minimum salary level that white collar employees must be paid to remain exempt from overtime pay. The ruling strikes down both the higher salary level test that went into effect on July 1, 2024 and blocks the next change set for January 1, 2025. This has the effect of returning the minimum pay to the 2019 level of $35,568 per year ($684 per week). Nonprofits will no longer be required to adjust salaries of white collar employees to meet the higher salary thresholds. For other considerations and recommended next steps, read the full article here published by Jackson Lewis P.C.
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This article presents general guidelines for Ohio nonprofit organizations as of the date written and should not be construed as legal advice. Always consult an attorney to address your particular situation.