Ohio – Hundreds of Ohio State University employees recently learned that their salary increases would be rescinded after a U.S. district judge overturned a new Department of Labor rule, which had expanded eligibility for overtime pay.
A November 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, informed 306 employees that their base pay increase, set to take effect on January 1, 2025, would no longer happen. However, employees were told they could keep the raises already granted for November and December, as those increases were finalized in November.
“We understand this is disappointing, and we want to give you a six-week advance notice to help you plan,” the email read. “Given the reversal of the law, we remain focused on making decisions that consider the well-being of all staff and the university.”
The decision stems from a November 15 ruling by U.S. District Judge Sean Jordan, who sided with the state of Texas and several business organizations that argued the Department of Labor had overstepped its authority by implementing a salary threshold for overtime eligibility. The rule, which took effect on July 1, aimed to make salaried employees earning less than $43,888 eligible for overtime pay in some executive, administrative, and professional roles. The threshold was set to increase to $58,656 next year.
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With the court’s ruling, the previous salary threshold of $35,568 is reinstated, meaning employees earning that amount or less would now be eligible for overtime pay. The change also affects Ohio State, where salary adjustments under the now-voided rule had resulted in a total increase of $2,047,000, according to university spokesperson Ben Johnson.
“Following the court’s decision, employees who received raises in November and December will revert to their original salaries in January,” Johnson explained. He emphasized that the university values its more than 50,000 employees and appreciates their contributions to the institution’s mission.
He further clarified that all employees would still be eligible for annual merit increases, market-based salary adjustments, and promotion opportunities.
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