Federal Judge in Sherman, Texas Throws Out DOL Overtime Rule
DOL Overtime Rule Update
U.S. District Judge Jordan in the Northern District of Texas struck down the U.S. Department of Labor’s (DOL) 2024 rule that increased the base salary for workers to be exempt from overtime pay. The State of Texas and business groups, including hotel entities, filed lawsuits against the DOL, challenging the rule.
2019 Threshold in Effect
The rule would have required employers to pay overtime to salaried workers who earn less than $1,128 per week, or about $58,600 per year, when they work more than 40 hours in a week, beginning January 1, 2025. The DOL had also raised the minimum salary threshold to about $44,000 per year on July 1, 2024.
The previous salary threshold of about $35,500, which was set in 2019, will now be back in effect.
Got Questions?
The DOL can appeal the ruling to the 5th U.S. Circuit Court of Appeals, which is widely regarded as the most conservative federal appeals court. However, the incoming Trump administration could abandon any attempt to revive the rule.
If you have questions about overtime, overtime exemptions, the ruling, or employment law generally, do not hesitate to get in touch with a THLA attorney at 512-474-2996 or by email at .
We will be sending out additional updates on this case as we learn more.