As noted in previous AHCA/NCAL communications, in November of 2024, a federal judge in Texas struck down the “Overtime Rule” from the U.S. Department of Labor (DOL) that would raise the minimum salary threshold for employees who are classified as “exempt” from overtime wages under the white-collar exemptions to the Fair Labor Standards Act.
Under this DOL rule, the salary threshold requirements for employees to be classified as “exempt” under the “white collar” exemptions increased in stages, the first going into effect on July 1, 2024. The next increase was scheduled for January 1, 2025. For more background about the rule, please read
AHCA/NCAL’s analysis developed when the rule was finalized (login required).
Most recently, on February 28, 2025, DOL appealed (for a second time) the Texas court’s decision that blocked the “Overtime Rule.” Both cases were appealed to the Fifth Circuit Court of Appeals. AHCA/NCAL will continue to monitor and provide any relevant updates potentially impacting long term care providers as this moves through the courts with the new Trump administration in place.