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Round up: Employer resources on DOL’s overtime exemption rule 

January 27, 2026

 

This roundup provides some information on the US Department of Labor (DOL)’s 2024 final rule that would have significantly expanded overtime protections. This rule has been challenged in multiple lawsuits, and in November 2024, a Texas federal district court judge vacated and set aside the final rule on a nationwide basis — holding that it exceeded the DOL’s statutory authority under the Fair Labor Standards Act (FLSA). As a result, the 2025 increases did not go into effect, and the July 2024 increases were revoked. The DOL appealed this decision, but in April 2025 it asked the Fifth Circuit Court of Appeals to hold the pending appeal in abeyance. This action allows the DOL to reconsider the rule.

For now, the 2019 rules issued by the Trump administration are in effect at the federal level. Some states do have salary thresholds that exceed the FLSA threshold — such as Alaska, California, Colorado, Maine, New York, and Washington.

To provide employers with some background information and context about the white collar overtime exemption rule and the various aspects and issues to consider, this roundup provides links to government information, third-party analyses, news articles and viewpoints. The aggregated content in each section is organized in reverse chronological order and is by no means comprehensive. The content also does not necessarily reflect Mercer’s or the authors’ point of view on the subject.

Download the print-friendly PDF to read the full GRIST.

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