Federal Judge Strikes Down Increased Overtime Thresholds 

On Friday, a federal district court judge in Texas struck down a federal overtime rule implemented by the Biden administration that took effect July 1 and was scheduled to increase on January 1, 2025. The new rule required overtime to be paid to more workers based on salary levels and would have significantly increased these amounts from a previous increase from just a few years ago. The judge determined that the rule improperly based eligibility for overtime pay on employees’ wages instead of their job duties. 

With the judge’s ruling, the federal overtime threshold under the Fair Labor Standards Act (FLSA) will revert immediately to the previous rate of $684 per week or $35,568 per year, which was increased  during the first  Trump administration. Given the transition between administrations, it is unclear whether the Department of Labor will appeal and, even if it does, the incoming Trump administration may drop that appeal. 

What does this mean for your township? First, the decision is a win for townships’ budgets for the remainder of 2024 and 2025 now that the required overtime threshold is once more set at$684 per week or $35,568 per year. Please note that an employee that meets this threshold must also meet one of the duties tests to be exempt from overtime. Click here to learn more about the duties tests under the FLSA.  

Second, if you would like to compare township employee salaries and benefits with those of similar townships, check out PSATS Salary Survey Plus. Results are available for 2024 and all participating townships can access this data. Didn’t participate yet? It’s never too late. Townships may participate now, or anytime, by entering 2024 data and receive immediate access to the results. 

Your designated township staff (PSATS Salary Survey Plus processor) can enter your township’s workforce data by logging onto psats.org, choosing the “My PSATS” tab, and clicking on “Salary Survey Plus.” If you have any issues accessing the survey or need to change the township official designated to enter data, email memberservices@psats.org.  Questions about the data or need help with a report? Email salarysurveyplus@psats.org or call (717) 763-0930, ext. 126, for Katie Lizza or ext. 138 for Holly Fishel.