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FEDERAL COURT STRIKES DOWN LATEST FEDERAL OVERTIME RULE

By Adrienne Hersh, JD, ICS Legal Counsel · November 20, 20242 min read

Salary and Overtime Logs — Federal Court Strikes Down Latest Federal Overtime Rule

Summarize this article with Paxson

As the ICS previously reported, on April 24, 2024, the U.S. Department of Labor (DOL) announced a final rule that would have substantially increased salary threshold amounts for determining which “white collar” (executive, administrative, professional [EAP] or highly compensated) employees would be eligible for overtime pay and which employees would be exempt (do not qualify for) overtime pay. The rule was widely opposed by employers, as it was anticipated to expand the number of overtime-eligible employees by allowing them to earn more while still qualifying for overtime pay.

However, on November 15, 2024, a federal court in Texas struck the entire final 2024 rule, which voids the 2024 and 2025 increases and rolls back the thresholds to $35,568 for EAP employees and $107,432 for highly compensated employees, as these thresholds existed under the previous rule.

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About the Author

Adrienne Hersh, JD, ICS Legal Counsel

Adrienne serves as Illinois Chiropractic Society general counsel and provides legal advice and support on a wide range of legal issues affecting chiropractic physicians, including licensing and other health care regulations, scope of practice, insurance and reimbursement, business structuring, labor and employment, contracts, and litigation. Adrienne previously served for 8 years as general counsel to the Illinois Department of Professional Regulation (now the Division of Professional Regulation, Department of Financial and Professional Regulation), where she was chief legal counsel responsible for overseeing all legal issues and advising the 50+ licensing and disciplinary boards, including the Medical Disciplinary Board and the Medical Licensing Board. She is a member of the Illinois State Bar Association Health Care Section, the Illinois Association of Healthcare Attorneys, and the National Association of Chiropractic Attorneys.