The U.S. Department of Labor headquarters building on Wednesday, Aug. 21, 2024, in Washington, D.C. Credit: Tierney L. Cross via TNS
Hundreds of university employees had their raises rescinded after a United States district judge overturned a new Department of Labor rule Nov. 15 that made more employees eligible for overtime pay due to a salary threshold increase.
A Nov. 22 email from Katie Hall — Ohio State’s senior vice president of talent, culture and human resources — and Sarah Sherer — senior associate vice president and chief human resources officer for the Wexner Medical Center — alerted 306 Ohio State employees they would no longer receive an increase of their base pay starting Jan. 1, 2025.
Employees were able to retain the previously established increases for November and December, as the salary increases officially went into effect Nov. 1, according to the email.
“We know this is disappointing, and we want to provide a six-week advance notice that will give you time to plan ahead,” the email states. “Given the reversal in the law, we will continue to focus on impact and decisions that consider all of our staff and the university.”
Nov. 15, U.S. District Judge Sean Jordan sided with the state of Texas and a group of business organizations that argued the Department of Labor abused its authority in expanding overtime pay by prioritizing wages over job duty when determining an employee’s eligibility, according to the Associated Press.
The rule went into effect July 1, requiring employers to pay overtime to salaried workers who make less than $43,888 a year in some executive, administrative and professional roles, according to the Associated Press. This cap was set to rise to $58,656 next year.
The previous salary threshold of $35,568 is positioned to go back into effect after this ruling, according to the Associated Press. Therefore, individuals making that salary or less will be eligible for overtime pay.
Ohio State saw a total salary adjustment increase of $2,047,000 when the Department of Labor rule “that increased the salary threshold to be exempt from overtime” was in place, university spokesperson Ben Johnson said in an email.
“Last month, a federal court struck down that change,” Johnson said. “Accordingly, employees receiving increased pay in November and December will revert to their original salary in January.”
Johnson said the university values its “more than 50,000 employees and [appreciates] their contributions to the university and its mission.”
“All employees remain eligible for annual merit increases, salary adjustments based on market rate, and promotion,” Johnson said.
This story was updated Dec. 5 at 4:09 p.m. to add clarification as to why salaries at Ohio State were initially increased.
