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ARTICLE · 20 NOVEMBER 2024

Turning Back Overtime – Texas Judge Strikes Down Salary Threshold Increase

Ward and Smith, P.A
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A federal judge in Texas struck down the U.S. Department of Labor's ("DOL") rule that drastically increased the minimum salary thresholds for bona fide executive...

United StatesEmployment and HR
S. McKinley Gray, III
S. McKinley Gray, III
Avery J. Locklear
Avery J. Locklear

A federal judge in Texas struck down the U.S. Department of Labor's ("DOL") rule that drastically increased the minimum salary thresholds for bona fide executive, administrative, and professional employees (the "EAP Exemption").

Judge Sean Jordan of the U.S. District Court for the Eastern District of Texas halted the rule that was projected to expand overtime pay to millions of workers across the country.

Earlier this year, the DOL announced a final rule (the "2024 Rule") that would increase the EAP Exemption's salary threshold in two waves (Raising the Rate: DOL Expands Overtime Protections to Millions of Workers - Ward and Smith, P.A.). The first wave, which went into effect on July 1, 2024, increased the minimum salary threshold from $684 per week ($35,568 annualized) to $844 per week ($43,888 annualized). A second wave, which was anticipated to take effect on January 1, 2025, would have increased the salary threshold to $1,128 per week ($58,656 annualized).

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