On November 15, 2024, a federal judge in Texas struck down the U.S. Department of Labor’s (DOL) latest attempt to raise the minimum salary thresholds for the Fair Labor Standard Act’s (FLSA) white-collar overtime exemption, finding that the rule exceeded the agency’s statutory authority.

Quick Hits

• A federal judge in Texas struck down the DOL’s April 2024 overtime rule that sought to raise the minimum salary levels for the FLSA’s white-collar overtime exemption.
• The ruling comes in a challenge by the state of Texas and a group of more than a dozen business organizations.
• The DOL rule had raised the minimum salary level on July 1, 2024, to the equivalent of $43,888 per year, and it was set to increase to $58,656 per year on January 1, 2025.

U.S. District Judge Sean Jordan for the Eastern District of Texas granted summary judgment in Texas v. Department of Labor to the state of Texas and a group of more than a dozen business organizations, striking down the DOL’s April 2024 rule to raise the minimum salary for the FLSA’s executive, administrative, and professional (EAP) employee overtime exemption.

“[T]he Department’s changes to the minimum salary level in the 2024 Rule exceed its statutory jurisdiction,” Judge Jordan wrote in the decision.

The decision comes a week after Judge Jordan heard oral arguments in the case and just over one month before the DOL rule was set to next increase the salary threshold on January 1, 2025. The ruling further invalidated the salary...

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