Close Menu
Human Resources Mag
  • Home
  • News
  • Management
  • Guides
  • Law
  • Talents
  • Benfits
  • Technology
  • More
    • Web Stories
    • Editor’s Picks
    • Press Release
What's On

How a hospital DEI program succeeds

July 27, 2025

HR Life Cycle Explained: 13 Steps + Toolkit for HR Leaders

July 26, 2025

A ‘steady demand for recruiters’ signals labor market conditions

July 26, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Human Resources Mag
Subscribe
  • Home
  • News
  • Management
  • Guides
  • Law
  • Talents
  • Benfits
  • Technology
  • More
    • Web Stories
    • Editor’s Picks
    • Press Release
Human Resources Mag
Home » Ohio State Cancels Employee Raises After Overturning of DOL Rule
Law

Ohio State Cancels Employee Raises After Overturning of DOL Rule

staffBy staffDecember 10, 20244 Mins Read
Share Facebook Twitter Pinterest Copy Link LinkedIn Tumblr Email Telegram WhatsApp
Follow Us
Google News Flipboard
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link

The Department of Labor was forced to roll back its regulations on the expanded overtime rule and the consequences are already apparent. Ohio State University has canceled the employee raises that it had announced for over 300 workers in November and December. 

According to The Columbus Dispatch, Ohio State had made salary adjustments that amounted to around $2 million in total after the DOL’s minimum wage threshold for overtime payment went up earlier this year in June. The regulatory change was finalized in the spring and was expected to roll out in two parts, with the next phase scheduled for January 1, 2025, however, a Texan judge ruled that the DOL had overextended its authority.

Ohio State cancels employee raises

Image: Pexels

Ohio State Cancels Employee Raises—Employers Are Expected to Continue Reversing Wage Hikes

Ohio State’s decision to undo employee raises is a controversial one but not unexpected. The information was revealed via an email from Katie Hall, who is the Senior VP of Talent, Culture, and HR at OSU, and Sarah Sherer, the Senior Associate VP and CHRO at the organization. The email informed around 306 Ohio State workers that the pay hike on their base pay that had been offered to them recently was coming to an end on January 1, 2025.

“We know this is disappointing, and we want to provide a six-week advance notice that will give you time to plan ahead,” they explained in the email. “Given the reversal in the law, we will continue to focus on impact and decisions that consider all of our staff and the university.”

The employees’ raises totaled approximately $2,047,000, and the employees were from a range of different departments and colleges from across the university. Considering that the wage hike was given by OSU to adhere to the federal overtime rule, the reversal in pay policy is no surprise. 

More employers who have promised a rise in pay as a part of the regulation will likely rescind their offer in the coming months.

Why Did Ohio State Rollback Overtime Pay?

The DOL federal overtime rule at the heart of OSU’s decision, increased the minimum wage threshold for overtime pay from $35,568 to $43,888 in July. In January, the threshold for overtime pay under the Fair Labor Standards Act (FLSA) was expected to increase for a second time in less than a year, moving up to $58,656. 

This meant that more workers with lower wages would be eligible to receive higher compensation for overtime work if they were on the job over 40 hours a week. Employers who realized that the overtime wage payout would be higher than just regularly paying better salaries increased the pay for workers who felt below the threshold. This improved pay was a welcome change for workers and proved that employers were in fact capable of paying higher wages if they wanted. 

However, after pushback from Texan businesses, a federal judge reviewed the case and eventually put an end to the adjustment plans. The judge found that the overtime rule put a greater emphasis on pay as a qualifying factor instead of taking job duty into consideration as well. 

Employers who had increased the pay for employees now had the option to leave pay at the new sum since it had already been promised to employees, or go back on their word and rescind the offer. Ohio State’s overtime pay rollback makes it apparent which option was preferred by the university.

The DOL has appealed the ruling and some businesses are waiting to see what happens before they also move to undo the raises offered in relation to the shift in regulations. The DOL’s odds of winning the appeal remain slim, but HR experts warn against repeatedly offering and reversing decisions in relation to pay as this can be greatly demotivating to employees.

Follow on Google News Follow on Flipboard
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Copy Link

Related Articles

Olipop’s PTO Policy Recommits to Employee Well-Being

July 25, 2025 Law

A cultural overhaul or a risky reset?

July 25, 2025 Law

Amazon Ring Staff Promotions Will Now Hinge on AI Usage

July 24, 2025 Law

Nissan Plant Shutdown in Japan to Result in 2,400 Job Cuts

July 23, 2025 Law

How HR Can Fight Back

July 21, 2025 Law

Colorado’s AI Law Sets a High Bar for HR Compliance

July 20, 2025 Law
Top Articles

Accused of fraud, murder, fired exec awarded $500,000, 24 months’ notice

January 9, 202499 Views

5 Best Learning Management Systems in 2025

February 11, 202592 Views

Canadian Tire store under investigation for alleged exploitation of temporary foreign workers

October 2, 202492 Views
Stay In Touch
  • Facebook
  • YouTube
  • TikTok
  • WhatsApp
  • Twitter
  • Instagram
Latest News

Fewer Canadians moving to U.S. permanently: StatCan

staffJuly 25, 2025

Vancouver nurse files human rights complaints after firing over gender views

staffJuly 25, 2025

Olipop’s PTO Policy Recommits to Employee Well-Being

staffJuly 25, 2025
Most Popular

How a hospital DEI program succeeds

July 27, 20250 Views

HR Life Cycle Explained: 13 Steps + Toolkit for HR Leaders

July 26, 20250 Views

A ‘steady demand for recruiters’ signals labor market conditions

July 26, 20250 Views
Our Picks

Fewer Canadians moving to U.S. permanently: StatCan

July 25, 2025

Vancouver nurse files human rights complaints after firing over gender views

July 25, 2025

Olipop’s PTO Policy Recommits to Employee Well-Being

July 25, 2025

Subscribe to Updates

Get the latest human resources news and updates directly to your inbox.

Facebook X (Twitter) Instagram Pinterest
  • Privacy Policy
  • Terms of use
  • Advertise
  • Contact Us
© 2025 Human Resources Mag. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.