Hundreds of Ohio State Employees to See Pay Raises Reversed
In a surprising turn of events for hundreds of Ohio State University (OSU) employees, recent salary increases are set to be rescinded. This reverse comes mere weeks after a federal judge overturned a U.S. Department of Labor rule that significantly increased the salary threshold required to exempt an employee from overtime pay.
A Rule Change and Its Ripple Effects
The rule, finalized earlier this year, implemented a gradual raise in the overtime pay threshold. The initial phase, which took effect on July 1, raised the exemption threshold from $35,568 to $43,888. A second phase, scheduled to begin on January 1, would have further increased the threshold to $58,656, impacting an estimated four million U.S. workers nationwide.
In response to the Department of Labor’s mandate, OSU implemented the second round of raises for eligible employees on November 1. However, with the rule reversal, higher education institutions are no longer obligated to provide these salary increases to exempt employees. This shift impacts various positions across universities, including admissions officers, student affairs professionals, and athletic staff, who were anticipated to benefit from the nationwide salary increase.
Communicating the Change
On November 22, OSU notified 306 affected employees that the second pay raise they had received would be discontinued after December. The email stated that employees would continue to receive the increase for November and December, but the raise would disappear in January. Notably, pay raises implemented under the first phase of the rule on July 1 would remain in place.
“We know this is disappointing,” the email read. “We want to provide a six-week advance notice that will give you time to plan ahead. Given the reversal in the law, we will continue to focus on impact and decisions that consider all of our staff and the university.”
How might this situation at Ohio State University impact future negotiations between universities and employee unions regarding compensation and benefits?
## Ohio State Pay Raises Reversed: A Conversation with an Employment Law Expert
**Host:** Welcome back to the show. We’re discussing a controversial decision by Ohio State University to rescind pay raises for hundreds of its employees. Joining us to unpack this development is employment law expert, Professor Sarah Chen from the [University Name]. Professor Chen, thanks for being here.
**Professor Chen:** It’s a pleasure to be here.
**Host:** Let’s dive right in. This seem like a very sudden change of heart from OSU. What prompted this reversal of the pay raises?
**Professor Chen:** This move follows a recent federal court decision that overturned a Department of Labor rule regarding overtime pay. The rule, which the Department of Labor had implemented earlier this year, raised the salary threshold for exempting employees from overtime pay. [[1](https://www.wosu.org/politics-government/2024-12-03/ohio-state-rescinds-raises-for-hundreds-of-employees-after-judge-overturns-federal-overtime-rule)] Essentially, anyone making below that threshold would have to be paid overtime.
**Host:** So, how did this impact OSU and its employees?
**Professor Chen:** The university, like many other employers, had adjusted salaries to comply with the new rule. However, with the rule being overturned, they’re now required to adjust those salaries back, effectively rescinding the raises for the affected employees.
**Host:** What are the implications for the affected employees?
**Professor Chen:** This is undoubtedly a setback for them, as they’re seeing their recently adjusted salaries revert to their previous levels. However, it’s important to remember that employers are navigating a complex legal landscape here. They’re trying to comply with federal regulations, and these regulations are subject to change.
**Host:** Do you think this situation reflects a larger trend in employment law?
**Professor Chen:** The ongoing dialog surrounding overtime pay and wage thresholds is definitely a hot topic in employment law. We’re likely to see more cases like this as these regulations continue to be debated and potentially revised.
**Host:** Professor Chen, thank you so much for your insights on this complex issue. This is certainly a situation worth watching as it unfolds.
