Texas Court Rules DOL Overtime Rule Invalid

The U.S. District Court for the Eastern District of Texas issued a ruling invalidating the Department of Labor’s (DOL) overtime final rule which was published in April 2024. In the ruling, the judge explained that DOL had overstepped its authority regarding overtime exemption, stating the “the minimum salary level imposed by the 2024 Rule ‘effectively eliminates’ consideration of whether an employee performs ‘bona fide executive, administrative, or professional capacity’ duties in favor of what amounts to a salary-only test.” The automatic updates to the minimum salary threshold every three years as written in the final rule were also determined to be beyond DOL’s authority.

After this decision, the minimum salary threshold is once again set to $35,568, and the threshold for highly compensated employees is set to $107,432.

MHI had previously joined a coalition to oppose the overtime rule to allow businesses time to review and apply the changes. continue to monitor the next steps.