DOL Overtime Pay Rule Reversal – What it Means Workers?

The overtime pay rule reversal in November 2024 means many workers who would have become eligible for overtime pay under a new Department of Labor (“DOL”) rule are no longer covered. The DOL had planned to raise the salary threshold for overtime eligibility, expanding overtime protections to more salaried employees. However, a court decision overturned this rule, keeping the threshold at its lower 2019 level and limiting workers’ access to overtime pay.

What Happened with the Overtime Pay Rule Reversal?

The DOL’s 2024 Overtime Rule was set to raise the salary threshold to $43,888 in July 2024 and $58,656 in January 2025, making more salaried workers eligible for overtime pay. However, on November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated this rule, meaning it’s no longer in effect. Now, the threshold is back to $35,568 annually from the 2019 rule.

This reversal is significant because it affects how many workers qualify for overtime. If you earn less than $35,568, you’re automatically entitled to overtime for hours over 40 per week. But if you earn more, your eligibility depends on your job duties.

How Does The Overtime Pay Rule Reversal Affect You?

If you earn above $35,568, your employer might classify you as exempt from overtime, but this isn’t automatic. You must meet specific job duties, such as managing others or making key decisions, to be exempt. For example, if you’re a salaried worker earning $40,000 and your job is mostly routine, you might still be entitled to overtime pay.

The overtime pay rule reversal could possibly lead to misclassification, where employers wrongly label workers as exempt, denying them overtime.

What Can You Do if You are Wrongfully Denied Overtime?

If you think you’re being denied overtime pay, consider taking these steps:

  • Track Your Hours: Document any overtime you work without extra pay and any related communications.
  • Check Your Status: Assess whether your job involves executive, administrative, or professional duties. If not, you might be non-exempt.
  • Consult a Legal Expert About Filing a Claim: Class action lawsuits can help if many workers face similar violations. Contact a law firm which specializes in wage and hour litigation for a legal consultation and, importantly, to ensure compliance with FLSA’s statute of limitations (typically two years, extendable to three for willful violations).

The DOL’s 2024 Overtime Rule: Context & Legal Challenge

On April 26, 2024, the DOL published a final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.”

This rule aimed to update the Fair Labor Standards Act (FLSA) by increasing the salary threshold for overtime exemptions. The phased implementation included:

  • Effective July 1, 2024, raising the threshold to $43,888 annually ($844 per week).
  • Effective January 1, 2025, further increasing it to $58,656 annually ($1,128 per week).
  • Additionally, the highly compensated employee threshold was set to rise to $132,964 on July 1, 2024, and $151,164 on January 1, 2025, with automatic updates every three years starting July 1, 2027.

It was estimated to extend overtime protections to millions of workers, particularly those earning between the previous threshold of $35,568 and the proposed new levels.

See also: Final Rule: Restoring and Extending Overtime Protections and DOL April 23, 2024 News Release.

Court Decision and Overtime Pay Rule Reversal

On November 15, 2024, U.S. District Judge Sean Jordan, Eastern District of Texas, blocked the Biden Administration rule expanding the ability for overtime pay for millions more salaried workers in the United States by ruling that the Department of Labor could not prioritize employee wages over job duties when determining eligibility. Judge Blocks Biden administration’s rule to expand overtime pay for millions.

This decision meant that the rule, including the July 1, 2024 increase, was effectively nullified retroactively.

As a result, the DOL reverted to enforcing the 2019 rule’s thresholds:

  • Minimum salary level: $684 per week, equivalent to $35,568 annually.
  • Highly compensated employee threshold: $107,432 annually.

Lawsuits regarding the 2024 final rule are currently pending in two other federal district courts, and the United States has filed a notice of appeal from the November 15 decision.

Implications for Workers: Are You Affected?

The overtime pay rule reversal has significant implications for workers, particularly those earning between $35,568 and $43,888, who would have been automatically eligible for overtime pay under the 2024 rule’s first phase.

Now, their exemption status depends on meeting certain requirements of the FLSA’s job duties test for executive, administrative, or professional employees, including:

  • Executive Exemption: Managing the enterprise or a department, directing employees, and have the authority to hire and fire other employees.
  • Administrative Exemption: Performing office or non-manual work directly related to management or general business operations, with discretion and independent judgment.
  • Professional Exemption: Work requiring advanced knowledge, typically in a field of science or learning, and involving consistent exercise of discretion.

For example, a store manager earning $40,000 who primarily handles routine tasks like stocking shelves might not meet these criteria and should be non-exempt, entitled to overtime pay.

Employers, however, might misclassify such workers as exempt, especially in the confusion following the rule reversal, leading to potential wage theft.

Misclassification Risks and Wage Theft

The lower salary threshold increases the risk of misclassification, where employers label workers as exempt without meeting the job duties test.

Signs of potential misclassification include:

  • Working over 40 hours weekly without additional compensation.
  • Performing routine tasks without managerial or decision-making authority.
  • Employers not tracking hours worked, assuming salaried status exempts overtime requirements.

Class Action Lawsuits as a Remedy

Workers can file class actio lawsuits under the FLSA to recover unpaid minimum wages and overtime. Successful cases have resulted in significant settlements:

    Have You Been Wrongfully Denied Overtime Pay?

    The overtime pay rule reversal has created uncertainty, potentially leaving workers vulnerable to misclassification and wage theft. Your rights, however, under the FLSA remain protected. If you believe you’ve been wrongly denied overtime pay by your employer, Kehoe Law Firm is here to help.

    Our experienced class action attorneys are dedicated to protecting workers’ rights. For a free, no-obligation evaluation of potential legal claims, send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected]

    KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

    About Kehoe Law Firm, P.C.

    Kehoe Law Firm, P.C. is a plaintiff-side class action firm, fiercely committed to safeguarding investors and consumers from corporate fraud and misconduct. Nationally recognized, our attorneys have taken the reins as Lead or Co-Lead Counsel in high-profile cases, securing over $10 billion in recoveries for institutional and individual investors and consumers. Through relentless class action litigation, we tackle securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations head-on. Beyond that, we champion whistleblowers and fight against data breaches, consumer scams, employment law abuses, retirement plan mismanagement, and deceptive business practices. With a no-nonsense, results-focused approach, we chase down meaningful outcomes—delivering justice and substantial recoveries for those we represent.

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      Seat Belt Buckle Anchor Bolt – Focus of Recall – 240,510 Ford Explorer & Lincoln Aviator SUVs Potentially Affected

      Kehoe Law Firm, P.C. is notifying consumers that Ford Motor Company (“Ford”) is recalling certain 2020-2021 Ford Explorer and Lincoln Aviator vehicles.

      The seat belt buckle anchor bolts at one or more seating positions may be improperly secured. Additionally, vehicles may have an improperly secured seat belt retractor anchor bolt and/or seat belt anchor bolt at the second-row center seating position, if equipped.

      A loose seat belt or seat belt buckle may not properly restrain an occupant during a crash, increasing the risk of injury.

      240,510 2020-2021 Ford Explorer and Lincoln Aviator SUVs Potentially Impacted by the Recall

      216,563 Ford Explorer and 23,947 Lincoln Aviator SUVs are the subject of the recall. The recalled vehicles may have an improperly secured seatbelt buckle anchor bolt at one or more seating positions. Vehicles may also have an improperly secured seatbelt retractor anchor bolt and/or seatbelt anchor bolt at the second-row center seating position if equipped.

      Ford is not aware of any reports of accident or injury related to this condition.

      Remedy for Ford Explorer and Lincoln Aviator Vehicle Owners and Lessees Affected by the Recall

      Dealers will inspect seat belt buckle anchor bolts in all seating positions. Additionally, dealers will inspect the seat belt retractor anchor bolt and seat belt anchor bolt at the second-row center seating position, if equipped. If loose anchor bolts are found, the affected seat components will be replaced. Repairs will be performed free of charge.

      Additional Information About the Vehicle Recall 

      More information about the recall can be obtained by clicking the following:

      NHTSA’s Safety Recall Report – 25V-093

      NHTSA Recall Acknowledgement

      Manufacturer Notice to Dealers

      How Do I Know if My Vehicle Has Been Recalled?

      To determine if your vehicle is subject to the recall, please click Check for Recalls to search vehicles, car seats, tires and other equipment for safety recalls, investigations, complaints and manufacturer communication.

      Questions or Concerns About A Vehicle Defect or Safety Recall?

      Vehicle owners and lessess affected by automotive defects or safety recalls are encouraged to contact Kehoe Law Firm, P.C. by sending us a message below or contacting Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims.

      Our class action legal services are on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

      About Kehoe Law Firm, P.C. 

      Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and corporate misconduct. Our attorneys have served as Lead or Co-Lead Counsel in cases recovering over $10 billion on behalf of institutional and individual investors and consumers.

      Through class action litigation, we hold corporations accountable for securities fraud, breaches of fiduciary duty, unfair or inadequate mergers and acquisitions, and antitrust violations. We also represent whistleblowers and prosecute data breach, consumer protection, and employment law violations, as well as cases involving retirement plan mismanagement and deceptive business practices. With a results-driven approach, we pursue impactful litigation to achieve meaningful results and recoveries for those we represent.

      bluebird bio – BLUE

      Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of bluebird bio, Inc. (NASDAQ:BLUE) regarding the adequacy and fairness of the proposed acquisition of bluebird bio by “funds managed by global investment firms Carlyle (NASDAQ: CG) and SK Capital Partners, LP (‘SK Capital’) in collaboration with a team of highly experienced biotech executives.”

      On February 21, 2025, bluebird bio announced an agreement to be acquired in a deal bluebird bio said is a “transaction [that] is the only viable solution to generate value for stockholders.”

      On this news, bluebird bio’s stock was down more than 38% pre-market on February 21, 2025.  

      Obtain More Information About the Securities Investigation 

      bluebird bio investors are encouraged to can send us a message or complete Kehoe Law Firm’s Stockholder Information Request form to contact an attorney for a free, no-obligation legal evaluation.

      For direct inquiries, bluebird bio shareholders should contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected].

      About Kehoe Law Firm, P.C.

      Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

      Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

      Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses

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      Kehoe Law Firm, P.C.
      2001 Market Street
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      [email protected]

      Cardlytics, Inc. – CDLX

      Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of Cardlytics, Inc. (“Cardlytics” or the “Company”) (NASDAQ:CDLX) who purchased or otherwise acquired Cardlytics stock shares between March 14, 2024 and August 7, 2024, inclusive (the “Class Period”).

      Cardlytics investors who acquired their stock during the Class Period with losses greater than $50,000 are encouraged to send us a message or complete our Kehoe Law Firm’s Stockholder Information Request form to reach an attorney for a free, no-obligation evaluation of potential legal claims.

      Cardlytics Securities Fraud Class Action Lawsuit Allegations

      A securities class action lawsuit has been filed against Cardlytics, alleging violations of federal securities laws. The complaint alleges that throughout the Class Period, the Cardlytics defendants failed to disclose material adverse facts to investors, including that increased consumer engagement led to an increase in consumer incentives; the Company was unable to increase billings in line with increased consumer engagement; and, as a result, there was a significant risk of slowing or declining revenue growth; and changes to its Ads Decision Engine (“ADE”) contributed to the “under-delivery” of budgets and customer billing estimates.

      Cardlytics Investors: Learn More About Your Legal Rights

      Investors with significant losses who acquired Cardlytics stock during the Class Period can contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to learn more about the securities investigation and receive a free, no-obligation legal evaluation.

      Investors have until March 25, 2025 to petition the Court for appointment as lead plaintiff. The Court typically appoints the investor with the largest financial interest who also meets the adequacy and typicality requirements. Shareholders who wish to discuss the lead plaintiff process should contact us.

      About Kehoe Law Firm, P.C.

      Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

      Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

      Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

       

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      Kehoe Law Firm, P.C.
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      Tel: 215-792-6676

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      [email protected]

      Humacyte, Inc. – HUMA

      Kehoe Law Firm, P.C. is investigating whether certain officers and directors of Humacyte, Inc. (“Humacyte”) (NASDAQ:HUMA) breached their fiduciary duties by failing to manage Humacyte in an acceptable manner and whether Humacyte and its shareholders were harmed as a result.

      The investigation concerns whether certain officers and directors of Humacyte provided false and misleading information about its manufacturing facilities and clinical sites, including its Durham, North Carolina, facility, which—according to an FDA Form 483—disclosed multiple violations, such as inadequate quality oversight and a lack of microbial quality assurance and testing.

      Humacyte Investors: Learn More About the Investigation and Your Legal Options

      Humacyte investors who want to learn more about the breach of fiduciary duties investigation or discuss potential legal claims can send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation legal evaluation of potential legal claims.

      About Kehoe Law Firm, P.C.

      Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors.

      Our firm litigates securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

      Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

       

      SEND US A MESSAGE

      Contact Us

      ADDRESS

      Kehoe Law Firm, P.C.
      2001 Market Street
      Suite 2500
      Philadelphia, PA 19103

      PHONE

      Tel: 215-792-6676

      EMAIL

      [email protected]