Over 300 Ohio State Employees Lose Salary Boosts After Overtime Rule Reversal
Ohio – Hundreds of Ohio State University employees will see their salary increases reversed after a U.S. district judge ruled against a Department of Labor overtime pay rule on Nov. 15. The ruling, which was backed by the state of Texas and several business organizations, overturned a regulation that had expanded overtime pay eligibility for workers in certain executive, administrative, and professional positions.
The new rule, which had taken effect in July 2024, raised the salary threshold for overtime pay from $35,568 to $43,888. The rule was set to increase this threshold to $58,656 in January 2025. However, the court ruling brought the salary threshold back down to $35,568, meaning workers earning below this amount will remain eligible for overtime pay.
As a result, 306 Ohio State employees received an email on Nov. 22 informing them that their scheduled salary increases, which were set to take effect on Jan. 1, 2025, would no longer be honored. The email, sent by senior university officials Katie Hall and Sarah Sherer, acknowledged the disappointment caused by the decision, offering six weeks’ notice to help employees prepare. Despite the reversal, employees were able to retain the previously awarded salary increases for November and December.
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Ohio State had originally allocated an additional $2,047,000 for salary adjustments under the now-voided overtime rule. University spokesperson Ben Johnson confirmed that this amount would no longer be distributed due to the court’s decision. Johnson emphasized that while the salary adjustments would be rescinded, the university remains committed to offering merit-based raises, salary adjustments based on market rates, and promotion opportunities for all its employees.
The ruling has had wide-reaching implications for employees across the country who were set to benefit from the higher overtime pay threshold. While the Department of Labor has yet to announce any further actions, the decision signals a setback in the ongoing debate over wage fairness and labor rights in the United States.
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