In November, the U.S. District Court for the Eastern District of Texas set aside the U.S. Department of Labor (DOL)’s final rule, which increased the amount under which employees would be considered exempt from overtime pay.

The court ruled that each of the three components exceeded the DOL’s statutory authority under the Fair Labor Standards Act. Given the nationwide scope of the rule, the court concluded that the rule is struck down on a nationwide basis. This means that the increase in the overtime threshold scheduled to become effective on January 1, 2025, will not go into effect.

The court also struck down the July 1, 2024, increase that previously went into effect, although this may have limited practical effect for many employers that may have already adjusted their payroll to comply with that increase. Finally, the court held that the final rule’s automatic “escalator” provision, which would have increased the threshold every three years going forward, was also unlawful.

Changing the overtime threshold on Wisconsin’s private, nonprofit colleges and universities would have had significant impacts on Wisconsin’s private, nonprofit colleges and universities by driving up institutional operating costs.

For more information email Rebecca Larson, WAICU executive vice president for external relations.