ALEXANDRIA, Va. — ACCA is applauding a federal court’s decision to invalidate the Department of Labor (DOL) 2024 overtime rule.
The November 15 ruling by the U.S. District Court for the Eastern District of Texas preserves much-needed flexibility for small businesses while ensuring labor policies remain focused on job duties rather than salary thresholds, a statement from ACCA said.
The decision means the minimum salary threshold for overtime exemption that went into effect on July 1 is now void. Additionally, the threshold increase that was to take effect Wednesday, Jan. 1, 2025, is also now void.
“The court’s ruling is a win for contractors and small business owners nationwide,” said Barton James, ACCA president and CEO. “By rejecting the one-size-fits-all approach of the overtime rule, this decision protects the ability of HVACR businesses to fairly classify employees based on their professional roles, not just their paychecks. We stand committed to supporting labor policies that balance fair wages with operational flexibility.”
A key part of ACCA’s core mission is to track regulations and policies that are likely to impact contractor businesses, and to help inform contractors about how they can respond to changing regulations. The association had been actively involved in opposing the overtime rule since it was first proposed.
The salary threshold for overtime exemption now reverts to $35,568 annually.
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