Late last week, the U.S. District Court for the Eastern District of Texas invalidated the U.S. Department of Labor’s (DOL) Overtime Pay Rule. The rule, which was finalized back in April, aimed to implement tiered increases and effective dates for both the minimum salary threshold and highly compensated employees (HCE). The minimum salary threshold, under which workers are eligible for overtime pay, increased to $43,888 on July 1, 2024, and then would have increased to $58,656 on January 1, 2025, representing more than a 60% increase over the pre-rule threshold. The HCE threshold, above which workers are not eligible for overtime pay, was raised to $132,964 on July 1, 2024, and then slated to increase to $151,164 on January 1, 2025; a 41% increase. The rule also provided for automatic updates every three years for the minimum salary and HCE thresholds. The court’s decision effectively places the minimum salary threshold back to $35,568 and the HCE threshold to $107,432.
This development is not only welcomed, but is a huge win for the ready mixed concrete industry. NRMCA, its members, sister associations and coalition partners have remained vocally and ardently opposed to the overturned rule since its inception. While the DOL may appeal the court’s ruling, it’s very unlikely the next administration will pursue any such efforts.
Click here to read the court’s opinion. For more information, contact Kevin Walgenbach at kwalgenbach@nrmca.org.
National Ready Mixed Concrete Association