Dive Transient:
- The Ohio State College is rolling again raises to 306 employees whose salaries have been adjusted following the U.S. Division of Labor’s expanded extra time rule, a college spokesperson confirmed to HR Dive. The rule, which was not too long ago overturned, had raised the minimal wage threshold for extra time beneath the Truthful Labor Requirements Act to $43,888 on July 1 and would have raised it to $58,656 on Jan. 1, 2025. The information was first reported by The Columbus Dispatch.
- The college had made wage changes totaling about $2 million after the rule’s passage however is strolling them again after a Texas federal decide dominated final month “the 2024 Rule exceeds the Division’s authority and is illegal.” That ruling successfully reset the edge at which employees certified for extra time to $35,568.
- “In alignment with the court docket ruling, staff receiving elevated pay in November and December will revert to their authentic wage in January,” the college stated in an emailed assertion. “All staff stay eligible for annual advantage will increase, wage changes based mostly on market fee, and promotion.” Ohio State employs greater than 50,000 individuals.
Dive Perception:
Attorneys have beforehand informed HR Dive employers ought to proceed with warning when contemplating making adjustments to employee salaries after the extra time rule was vacated.
Whereas DOL has appealed the ruling, the 2024 extra time rule is probably going lifeless, the attorneys stated. However nonetheless, employers that made classification or wage adjustments to adjust to the July threshold adjustment ought to suppose twice earlier than reversing wages or reclassifications, Chuck McDonald, co-chair of wage and hour follow at Ogletree Deakins, and Brett Coburn, companion at Alston & Chook, informed HR Dive.
Doing so might have a destructive affect on worker relations, McDonald stated, or open up an organization to litigation, Coburn stated. Such employees “will not be comfortably exempt from a duties perspective” and reclassifying them a second time might doubtlessly immediate them to speak to a lawyer, Coburn stated. “Chances are you’ll, by attempting to save lots of a bit of bit, be inviting litigation.”
Nevertheless, the attorneys stated any unannounced plans corporations needed to modify employees’ classifications or salaries to adjust to the beforehand anticipated — however now defunct — January 2025 rule change could possibly be shelved.
