DOL Overtime Final Rule Vacated Nationwide

On November 15, 2024, a Texas federal court ruled that the U.S. Department of Labor's (DOL) final rule raising the salary threshold for "white collar" minimum wage and overtime pay exemptions (the Overtime Final Rule), which we previously detailed here, is vacated and set aside on a nationwide basis. In its decision, the United States District Court for the Eastern District of Texas held that components of the rule exceeded the DOL's statutory authority under the Fair Labor Standards Act (FLSA).

Specifically, as of July 1, 2024, the Overtime Final Rule increased the minimum annual salary threshold from $684 per week (or $35,568 if annualized) to $844 per week (or $43,888 if annualized) to qualify executive, administrative, and professional positions as exempt from the FLSA's minimum wage and overtime requirements. The Overtime Final Rule also increased the new total annual compensation to meet the highly compensated employee exemption from $107,432 to $132,964 as