On November 18, 2024, a federal judge in Texas struck down the Department of Labor’s (DOL) overtime expansion rule which was set to increase the salary threshold for the “white collar” overtime exemptions in two phases and for adjustments every three years thereafter. This ruling nullifies the salary threshold increase to $58,656 which was set to take effect on January 1, 2025. Further, this ruling also overturns the previous increase to $43,888 that went into effect in July 2024. As a result, the salary threshold has now returned to $35,568. The court’s ruling replicates the reasoning utilized in a similar case from 2016 – increasing the salary threshold essentially invalidates the duties tests and exceeds the DOL’s authority. The current decision to block the ruling emphasizes the significance of the Supreme Court’s decision earlier this year to overturn, or limit, the Chevron doctrine in favor of judicial interpretation over agency rule. Please stay tuned for further guidance as the DOL may attempt to overturn this ruling.
Additional information can be found here: District-Court-Eastern-District-Texas-2024-Rule.pdf