Ohio State reverses hundreds of workers’ raises after DOL’s overtime rule overturned

The Ohio State College is rolling back raises to 306 workers whose salaries were adjusted following the United state Division of Labor’s broadened overtime rule, a college speaker confirmed to Human resources Dive. The guideline, which was recently reversed, had actually raised the minimum wage threshold for overtime under the Fair Labor Criteria Act to $43,888 on July 1 and would certainly have raised it to $58,656 on Jan. 1, 2025.” In alignment with the court ruling, workers getting boosted pay in November and December will revert to their initial salary in January,” the college stated in an emailed statement. Ohio State employs even more than 50,000 people.

The college had actually made salary changes completing concerning $2 million after the regulation’s passage however is strolling them back after a Texas government court ruled last month “the 2024 Regulation goes beyond the Division’s authority and is illegal.” That judgment successfully reset the threshold at which workers gotten approved for overtime to $35,568.

While DOL has actually appealed the judgment, the 2024 overtime regulation is likely dead, the attorneys said. Still, companies that made classification or wage adjustments to comply with the July threshold change need to assume two times before reversing reclassifications or incomes, Chuck McDonald, co-chair of wage and hour practice at Ogletree Deakins, and Brett Coburn, companion at Alston & Bird, told Human resources Dive.

Nevertheless, the attorneys stated any type of unannounced strategies companies had to change workers’ wages or classifications to follow the formerly anticipated– and now obsolete– January 2025 guideline modification might be shelved.

Doing so could have an unfavorable effect on employee relationships, McDonald said, or open a business to litigation, Coburn said. Such employees “may not be conveniently exempt from a responsibilities perspective” and reclassifying them a second time can possibly prompt them to talk to a legal representative, Coburn stated. “You may, by trying to conserve a bit, be welcoming litigation.”

“In alignment with the court ruling, workers obtaining boosted pay in November and December will go back to their initial income in January,” the college stated in an emailed statement. “All employees stay qualified for annual advantage increases, income changes based on market rate, and promotion.” Ohio State utilizes greater than 50,000 people.

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The Ohio State University is curtailing elevates to 306 workers whose wages were readjusted adhering to the U.S. Division of Labor’s increased overtime regulation, a college agent verified to HR Dive. The regulation, which was recently reversed, had increased the minimum wage threshold for overtime under the Fair Labor Criteria Act to $43,888 on July 1 and would have elevated it to $58,656 on Jan. 1, 2025. The information was initially reported by The Columbus Dispatch.

A single individual makes their means via the ‘Oval’ at Ohio State College on Aug. 13, 2020, in Columbus, Ohio. The university is eliminating elevates for more than 300 employees, a representative validated.
Matthew Hatcher via Getty Images