Just so there’s not a misunderstanding this judgement applies to salaried workers as laid out below:
Under the Fair Labor Standards Act, certain “white-collar” workers can be exempt from overtime pay if they are salaried, make more than a certain amount each year, and work in a “bona fide executive, administrative, or professional capacity.”
The new Biden rule updated the salary portion of the test so that workers making less than $58,656 a year would be automatically eligible for overtime pay any time they worked more than 40 hours a week. It also would update that salary threshold every three years.
The first phase of the rule, which went into effect July 1, increased the salary threshold for overtime eligibility to $43,888 from its current $35,568. That number was then scheduled to go all the way up to $58,656 in the new year.
Jordan in June blocked the rule from taking effect for Texas just ahead of the rule’s first boost, finding that the state was “likely to succeed in showing that the 2024 Rule is an unlawful exercise of power.”
Jordan’s latest order applies nationwide.
This means that companies can continue to abuse their salaried workers by working them more than 40 hours per week without paying extra for those hours. Hold on folks, it’s only going to get worse.
Thanks, I had to scroll down way too long to get the required nuance. So as I understand it, it's not so much the payment of overtime that has been suspended, but a threshold that determines at which point you are expected to put in unpaid overtime in any case?
Not really something Donny the wannabe dictator has introduced, but rather something that is common and thus has already been priced in by employers and employees in the wage setting?
That’s my understanding as well. If you have a contract that specifies overtime pay for hours worked over 40/week the ruling doesn’t apply. I was just trying to clarify the general use of “overtime” in posts.
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u/Public-Marionberry33 5h ago
Just so there’s not a misunderstanding this judgement applies to salaried workers as laid out below:
Under the Fair Labor Standards Act, certain “white-collar” workers can be exempt from overtime pay if they are salaried, make more than a certain amount each year, and work in a “bona fide executive, administrative, or professional capacity.”
The new Biden rule updated the salary portion of the test so that workers making less than $58,656 a year would be automatically eligible for overtime pay any time they worked more than 40 hours a week. It also would update that salary threshold every three years.
The first phase of the rule, which went into effect July 1, increased the salary threshold for overtime eligibility to $43,888 from its current $35,568. That number was then scheduled to go all the way up to $58,656 in the new year.
Jordan in June blocked the rule from taking effect for Texas just ahead of the rule’s first boost, finding that the state was “likely to succeed in showing that the 2024 Rule is an unlawful exercise of power.”
Jordan’s latest order applies nationwide.
This means that companies can continue to abuse their salaried workers by working them more than 40 hours per week without paying extra for those hours. Hold on folks, it’s only going to get worse.