Court Invalidates DOL Overtime Rule Nationwide
On November 15, 2024, the US District Court for the Eastern District of Texas retroactively invalidated a Final Rule from the Department of Labor (DOL) that had increased the minimum salary threshold for certain employees to be considered exempt from overtime pay under the Fair Labor Standards Act (FLSA). The rule was originally effective on July 1, 2024. This decision affects all employers nationwide.
The final rule provided staged increases to the standard salary level necessary for exemption from overtime pay for executive, administrative, and professional (EAP) employees. The first increase occurred July 1, 2024, raising the minimum salary level for EAP employees from $684 per week to $844 per week. The second increase was scheduled to occur on January 1, 2025 with an additional increase to $1,128 per week. The rule also created an automatic adjustment occurring on July 1, 2027 and then every three years thereafter.
What does invalidating the rule mean?
The scheduled increases to the minimum salary level for EAP employees to remain exempt from overtime did not, and will not, occur. The minimum salary level in effect prior to July 1, 2024 ($684 per week) is once again effective.
New Tax Withholding Estimator
The IRS has implemented a great new tool to help you estimate just how much you should be withholding to make sure you have the right amount of tax withheld from your paycheck at work.
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Labor Law Poster Changes
Employers in all states must make sure that their state labor law posters are up-to-date on a regular basis. Here are a few state changes and their effective dates:
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New tax withholding tables are issued
The IRS on Thursday issued new income tax withholding tables that reflect new tax rates and other changes for individuals implemented by P.L. 115-97, known as the Tax Cuts and Jobs Act, enacted Dec. 22 .
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The Importance of Labor Law Posters
Why is it so important to post labor law posters? Labor law posters define those federal and state employment-related laws that all employers must comply with in their place of business. In addition, employers are responsible for making sure that the posters are posted in an area where all employees have access to read them.
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Did You Know?
Effective July 1, 2014 – in Indiana – an officer of a corporation CAN NOW elect to be excluded from workers compensation coverage. An officer exclusion form needs to be completed and forwarded to the insurance carrier. If the policy is currently in force, an exclusion form can be completed and the officer will be excluded effective July 1, 2014.
Potential 2015 FUTA Credit Reduction States
The Federal Unemployment Tax Act (FUTA) has always been an odd payroll tax. The Act states that the FUTA rate is 6.0%, but feeling magnanimous, the Feds grant you a credit of 5.4%. So really the rate that most employers face is 0.6%.
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