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ARTICLE · 21 NOVEMBER 2024

DOL Salary Rule Vacated By Texas Court

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The US Department of Labor's Final Rule increasing the minimum salary levels required to qualify for the overtime exemptions is null and void.

United StatesEnvironment
Leslie Selig Byrd
Leslie Selig Byrd
Deryck R. Van Alstyne
Deryck R. Van Alstyne

The US Department of Labor's Final Rule increasing the minimum salary levels required to qualify for the overtime exemptions is null and void.

On November 15, 2024, a Texas federal district court set aside and vacated the Rule issued by the US Department of Labor in April 2024, which dramatically increased the salary threshold for the overtime exemptions under the Fair Labor Standards Act (FLSA). This decision affects employers nationwide. State of Texas & Plano Chamber of Commerce, et. al v United States Depart of Labor, Civ. No. 4:24-CV 499/468 (Nov. 15, 2024, J. Jordan). 1

In invalidating the 2024 Rule, US District Judge Sean Jordan of the Eastern District of Texas held that the US Department of Labor (DOL) exceeded its authority by prioritizing the salary over duties in applying the exemption, and by including future automatic salary increases.2

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