A federal court in Texas deciding the ongoing viability of the Department of Labor’s 2024 rule raising the FLSA salary threshold signaled on Friday, November 8th that the rule’s days may be numbered while hearing oral arguments.
You’ll recall that on June 28, 2024, the Texas court issued an initial ruling that blocked the Department of Labor from enforcing its 2024 rule only against the government of the State of Texas as an employer. For all other employers, the first increase under the rule went into effect on July 1, 2024, when the threshold increased from $684 per week to $844 per week.
Another increase is set for January 1, 2025, when the threshold will increase from $844 per week to $1,128 per week. The threshold will then increase automatically every three years based on up-to-date wage data.
During the nearly two hours of oral arguments on November 8th, the Court appeared skeptical of the analysis the US Department of Labor used to estimate the impact of its expansion of overtime pay protections. The Court suggested the DOL’s reliance on Census Bureau data to determine the impact of the increased salary level was flawed because it relies on self-reporting.
The Court did not indicate when a decision concerning the future of the overtime rule will be made, but it is anticipated that a decision will be released before the next threshold increase on January 1, 2025.
Comments