Court Vacates White-Collar Overtime Exemption Salary Increase

In a significant ruling that will apply nationwide to all employers, a federal judge in Texas returned the salary minimum for certain overtime exemptions to $684 per week ($35,568 annually). The court held on Nov. 15, 2024, that the U.S. Department of Labor (DOL) exceeded its statutory authority when it raised the minimum weekly salary for certain employees to maintain their overtime pay exemption.

The first in a series of increases to the salary minimum in the DOL's April 2024 final rule already took effect July 1, 2024. But another, more substantial increase was slated to take effect on Jan. 1, 2025. The Texas Court ruled that both increases were an unlawful exercise of the DOL's authority.