On Nov. 15, 2024, a federal judge in the Eastern District of Texas invalidated the Biden administration’s Fair Labor Standards Act (FLSA) overtime final rule. This decision eliminates the scheduled salary threshold increase previously set to take effect on Jan. 1, 2025, as well as the automatic updates planned to occur every three years.
Ohio University had previously communicated plans to comply with the updated salary thresholds in its Oct. 28 release . However, following this recent court ruling, those changes will no longer be necessary.
Background
As outlined in our Oct. 28 announcement , the second phase of FLSA changes would have raised the minimum salary threshold for overtime exemption to $58,656 annually ($1,128 per week). These updates would have impacted executive, administrative and professional employees, with faculty remaining exempt under separate FLSA criteria.
While Ohio University had prepared for these changes, we also recognized the potential for legal challenges and maintained flexibility to adjust as needed. The Division of Human Resources has been closely monitoring developments, working with department leaders to ensure our workforce would remain compliant and equitable.
What this means for OHIO employees
Ohio University’s phase one implementation will remain in effect, ensuring compliance with the salary threshold established in July 2024. The Division of Human Resources will not proceed with additional changes planned for January 2025 due to the court’s ruling.
Ohio University remains committed to ensuring compliance with federal labor standards and supporting our employees through communication and resources. We will continue to monitor legal developments and provide updates as necessary.