Federal Court Blocks Biden's Overtime Pay Expansion
A federal court has blocked the Biden administration's overtime rule, which would have increased the salary threshold for white-collar exemptions from $35,568 to $58,656 by 2025. The decision, applicable nationwide, criticized the rule for displacing the duties test and violating procedural requirements. Employers who adjusted salaries in anticipation of the rule may not lower them for employee relations reasons, but could reclassify some employees back to exempt status if they meet the duties test. The ruling emphasizes the importance of duties tests in determining exemptions.
