The U.S. District Court for the Eastern District of Texas has vacated and set aside the U.S. Department of Labor (DOL)’s final rule increasing the salary threshold for the “White Collar” overtime exemptions under the Fair Labor Standards Act (FLSA) on a nationwide basis.
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As you are aware, The U.S. Department of Labor (DOL) issued a Final Rule raising significantly the minimum salary level requirements for positions to meet the requirements of the FLSA’s “White Collar” Exemptions. The rule is to take effect on July 1, 2024.
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The first challenge to the Department of Labor's overtime rule has landed, but what the U.S. District Court for the Eastern District of Texas will do with it and how any decision will affect businesses remains up in the air. As this litigation develops, businesses must still prepare for the upcoming July 1, 2024, salary threshold increase.
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