WASHINGTON D.C. — (11-22-24) — Three days ago a Texas federal judge struck down a U.S. Department of Labor (DOL) rule that raised the minimum salary required to be paid to the majority of employees classified as ‘exempt’ from overtime and minimum wage requirements under the Fair Labor Standards Act (FLSA).
The news sent shockwaves through payroll firms such as ADP, who sent out an email to all of their customers informing them of the shocking ruling from the conservative Court for the Eastern District of Texas.
The United States District Court for the Eastern District of Texas brought in the holiday season by vacating and setting aside the United States Department of Labor’s (DOL) final rule raising the minimum salary threshold for the Fair Labor Standards Act’s (FLSA) white-collar overtime exemption.
The court concluded that the National Law Review, the rule exceeded the DOL’s statutory authority under the FLSA. Previously, the court enjoined enforcement of the rule for the state of Texas as an employer; however, this time, the court struck down the rule as it applies to all employers nationwide.”
The court’s ruling also entirely vacated the DOL’s rule, meaning the July 1, 2024, increases are now nullified. Consequently, the salary thresholds will revert to what they were under the DOL’s 2019 rule, with the EAP salary threshold at $684 per week ($35,558 annually) and the HCE threshold at $107,432 annually.
Article by: Paul Goldberg, Staff Writer
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