Happy Wednesday! In this week's Big I Buzz: The Department of Labor overtime rule was struck down by a Texas federal court judge. Plus, commercial auto insurance struggles persist in 2023.

DOL Overtime Rule Struck Down

On November 15, 2024, a Texas federal judge struck down the Department of Labor's (DOL) proposed updates to the overtime rule, which aimed to increase the salary threshold for overtime exemptions. Judge Sean Jordan ruled that the DOL exceeded its authority, effectively invalidating the rule nationwide.

In light of the ruling, the minimum salary threshold is once again set to $35,568, and the threshold for highly compensated employees is set to $107,432. The DOL may appeal the decision, but with a potential change in administration in January, the rule's future is uncertain. Employers are advised to consult legal counsel before making any changes to employee pay practices, especially in states with higher local thresholds. Read more here.

Commercial Auto Insurance Struggles Persist in 2023

The commercial auto insurance market faced continued challenges in 2023 despite significant premium rate hikes and underwriting changes. Insurers struggled with ongoing losses driven by factors such as increasing repair costs, higher claim severity, and litigation trends. Elevated claims from large trucking accidents and natural disasters also contributed to financial strain. These pressures have pushed insurers to focus on pricing discipline, risk segmentation, and other strategies to improve profitability. However, the market remains under pressure, highlighting the complexity of addressing these persistent issues effectively. Read more here.

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