Overtime regulations under the Fair Labor Standards Act (FLSA) were set to change significantly in 2024 and 2025, with a new rule that would have expanded overtime pay eligibility for millions of workers. However, a recent court decision has blocked those changes. Here’s what employees (especially if you are dealing with an unresolved overtime issue yourself) need to know about the blocked overtime rule, current regulations, and your rights.
The Lore Law Firm is here to support your rights and ensure you get what you deserve. Don’t hesitate to contact us for guidance or call us at 1-800-559-0400 to discuss your situation. Let’s work together to secure your financial future.
Understanding Overtime Pay and Exemptions
Most U.S. workers have a right to overtime pay under federal law (FLSA), which guarantees “time-and-a-half” pay for all hours worked over 40 in a workweek. Most hourly workers qualify for overtime, but there are limited exemptions under the FLSA (such as certain farmworkers, transportation workers, or seasonal employees).
However, some salaried employees are exempt from overtime if they meet three key criteria:
- Paid on a salary basis: Fixed salary each pay period (not hourly wages)
- Meets the minimum salary level: Salary meets or exceeds the regulatory threshold
- Performs executive, administrative, or professional duties: Primary job duties involve specific exempt work
If all three conditions aren’t satisfied, the employee should receive overtime pay for hours over 40. Being paid a salary alone does not disqualify you from overtime.
Current federal salary threshold: As of now, the minimum salary level for exemption is $684 per week ($35,568 per year). Salaried workers earning less than this must receive overtime pay if they work over 40 hours, regardless of job title. Those paid above $684/week might or might not be exempt – it depends on whether their job duties truly fall under executive, administrative, or professional categories.
At $684/week, someone earning just above the threshold could legally work 60-70 hours weekly without additional overtime pay, provided they meet the duties test for exemption.
The New Overtime Rule (2024-2025) and What Changed
In 2024, the DOL issued a final rule to significantly increase the overtime salary threshold in two steps:
● July 1, 2024: Threshold would rise from $684/week to $844 per week ($43,888 per year)
● January 1, 2025: Threshold would climb to $1,128 per week ($58,656 per year)
● Automatic updates: Starting in 2027, salary levels would update every three years based on wage data
These changes were substantial. The DOL estimated about 4.3 million workers would gain overtime rights – 56% women and 24% workers of color. The overtime expansion was expected to transfer $1.2-1.5 billion in wages to employees annually.
The rule also would have raised the “highly compensated employee” (HCE) threshold from $107,432 to $151,164 by 2025.
Legal Challenges and the Blocking of the New Rule
Business groups and the State of Texas filed lawsuits to block the new overtime rule in the U.S. District Court for the Eastern District of Texas – the same court that struck down a similar expansion in 2016.
Court injunction: On July 1, 2024, a federal judge in the Eastern District of Texas issued a preliminary injunction blocking enforcement of the new salary threshold, holding that Congress intended duties-not salary alone-to determine exempt status.
Nationwide vacatur: On November 15, 2024, the court vacated the rule nationwide, meaning both the July 1, 2024 and planned January 1, 2025 increases were invalidated. Employers who had already raised salaries weren’t required to reverse pay, but the federal threshold legally reverted to $684/week.
As a result, overtime rules reverted to the status quo. The federal minimum salary for exemption remains $684 per week ($35,568/year). The DOL has appealed the ruling to the Fifth Circuit, but as of September 2025, the appeal remains pending and the timing and outcome are uncertain.
What the Current Overtime Rules Mean for Employees (2025)
With the changes blocked, overtime rules in 2025 are essentially the same as since late 2019:
● Federal overtime pay rule: Non-exempt employees must receive 1.5 times their regular rate for all hours over 40 per week
● Salary threshold remains $684/week: Any salaried employee earning less must get overtime pay for hours over 40
● No increase (for now): The planned increases to $844/week and $1,128/week are not in effect
● Duties test still matters: Even if your salary exceeds $35,568, you may still be entitled to overtime if your job duties don’t meet legal definitions of exempt roles
Check your situation:
● Are you paid overtime when working over 40 hours? If yes, you’re likely non-exempt
● If not, is your salary above $684/week? If below, you should receive overtime
● If above, do your duties genuinely qualify as executive/administrative/professional?
State Overtime Laws: Additional Protections
Many states have their own overtime laws providing extra protections. States can set higher salary thresholds, and employers must follow whichever law is more favorable to employees. Notable examples in 2025:
● California: Minimum salary of $1,320 per week (~$68,640/year) for exempt status
● New York: $1,237.50/week in NYC and surrounding counties (~$64,350/year)
● Washington: $1,499.40/week for large employers (~$77,970/year)
● Other states: Colorado (~$1,086/week), Maine (~$845/week), and Alaska (~$953/week) also exceed federal thresholds
If you work in a state with its own standards, know your state’s rules. Your employer must follow whichever law provides greater protection.
The Duties Test: Why Job Duties Still Matter
Being exempt as an Executive, Administrative, or Professional (EAP) employee requires primarily performing specific job duties:
● Executive duties: Managing a department, regularly directing at least two full-time employees, genuine input on hiring/firing
● Administrative duties: Office work related to general business operations, exercising discretion and independent judgment on significant matters
● Professional duties: Work requiring specialized education or knowledge (doctors, lawyers, accountants, engineers)
If your job doesn’t satisfy these categories, you should likely be classified as non-exempt and receive overtime pay. Simply having a managerial title doesn’t automatically exempt you – what matters is your primary duty and level of authority.
What Should You Do If You’re Not Being Paid Overtime?
- Determine your status: Review your salary and duties against the tests discussed
- Talk to your employer: If comfortable, raise the question with HR (document the conversation)
- Keep records: Track your work hours – even rough journal entries help
- Know anti-retaliation rules: It’s illegal for employers to retaliate for asserting overtime rights
- File a complaint or consult an attorney: Contact the U.S. Department of Labor or an employment law attorney with expertise in handling overtime pay lawsuits.
Remember, overtime pay is your right if you’re a covered, non-exempt employee. You might be entitled to double 2-3 years of back pay.
Frequently Asked Questions
Q: Is the 2025 overtime rule in effect now?
A: No. A federal judge vacated the rule in November 2024. The salary threshold remains $684 per week.
Q: What is the current overtime salary threshold?
A: $684 per week ($35,568 per year) federally, though some states have higher thresholds.
Q: Who is eligible for overtime pay?
A: Any employee who is not “exempt” under FLSA – including almost all hourly workers and many salaried workers who don’t meet all three exemption criteria.
Q: Will the overtime threshold increase in the future?
A: Uncertain. The planned increases are on hold indefinitely. Future changes depend on appeals or new rulemaking.
Q: My state has its own overtime rules. Which applies?
A: Whichever provides greater protection and benefit to employees. Employers must follow the more favorable law.
Q: Does being salaried mean I can’t get overtime?
A: No. Many salaried workers are entitled to overtime unless they meet specific exemption tests for both salary level and duties.
Q: What about hourly workers?
A: Almost all hourly workers must be paid overtime for over 40 hours – no threshold or duties test applies.
Where to Get Help
While the anticipated 2025 overtime rule changes have been blocked, overtime laws still provide substantial protections. Don’t assume your employer’s classification is correct. If you have doubts about your overtime eligibility or believe you’re owed overtime pay, speak with an employment attorney with expertise in handling overtime cases. Understanding your rights could mean recovering thousands of dollars for the extra hours you’ve worked.
If you’re feeling overwhelmed by the new overtime rule changes in 2025, it’s time to take action. The Lore Law Firm is here to support your rights and ensure you get what you deserve. Don’t hesitate to contact us for guidance or call us at 1-800-559-0400 to discuss your situation. Let’s work together to secure your financial future.
