On Friday, November 15, 2024, a Texas federal court struck down the U.S. DOL rule increasing the salary threshold for white collar exemptions under the Fair Labor Standards Act with nationwide effect. This means the salary threshold for the executive, administrative, and professional exemptions is effectively back to the 2019 level of $35,568 annually ($684 per week).
The court’s decision likely seals the rule’s fate for good. While the Biden Administration could appeal the decision, the appeals court that would overhear the challenge is unlikely to act on the appeal before the Trump Administration takes office. It remains to be seen whether President-elect Trump will seek to raise this threshold during his next term, but it is unlikely that his incoming administration will appeal this decision in favor of the 2024 Rule.
In blocking the rule nationwide, the court found “the 2024 Rule exceeds the Department’s authority and is unlawful.” The ruling vacates the DOL’s overtime rule that increased the threshold at which workers qualified for overtime from $35,568 to $43,888 effective July 1st, to $58,656 effective Jan. 1, 2025, and then automatically triennially thereafter.
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