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ARTICLE · 22 NOVEMBER 2024

Federal Judge Strikes Down Increased FLSA Salary Basis Threshold

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A federal judge in Texas recently ruled that the Department of Labor (DOL) did not have the authority to increase the salary basis threshold for the so-called "white-collar" exemptions from overtime.

United StatesEmployment and HR
Tim K. Garrett
Tim K. Garrett
Hunter K. Yoches
Hunter K. Yoches

A federal judge in Texas recently ruled that the Department of Labor (DOL) did not have the authority to increase the salary basis threshold for the so-called "white-collar" exemptions from overtime. This ruling means that the new rule has been vacated nationwide, will not go into effect, and the previous increase has been rescinded.

Details of the Ruling

The November 15 ruling came just six short weeks before the next and largest increase in the salary threshold was set to occur. U.S. District Judge Sean Jordan of the Eastern District of Texas ordered the DOL's 2024 Fair Labor Standards Act Salary Basis Rule (Rule) be vacated.

The State of Texas and several business organizations were challenging whether the DOL had statutory authority to adopt the Rule, which would have raised the salary thresholds for executive, administrative, and professional employee overtime exemptions and implemented automatic adjustments every three years. The district judge found

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