Court Sides with Restaurant Law Center and Business Organizations; Vacates DOL Overtime Rule

Washington, D.C. (November 15, 2024) - Today, the U.S. District Court in the Eastern District of Texas overturned the U.S. Department of Labor (DOL) 2024 changes to the Overtime regulations, handing a win to a coalition of business groups - co-led by the Restaurant Law Center and the Texas Restaurant Association. The rule would have significantly increased the overtime threshold to include all employees making up to $58,656 annually, and then triggered automatic increases in the future.

National Restaurant Association President & CEO Michelle Korsmo issued the following statement about the ruling:

"Today's decision is a win for restaurant operators and their business viability. During the past five years, the average operator's labor costs have gone up more than 30 percent. The challenge to recruit talented managers is already pushing salaries higher, ensuring that good employees are making more through increases happening in the marketplace, in a more manageable manner for operators.

"We're pleased the court agreed with our concerns about how the DOL's one-size-fits all rule was an unlawful exercise of the agency's power that would have significantly driven up costs for business owners and consumers."

Read more of the Restaurant Law Center's arguments against the changes to the Overtime regulations here.

About the National Restaurant Association

Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises more than 1 million restaurant and foodservice outlets and a workforce of 15.5 million employees. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. We sponsor the industry's largest trade show (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart). For more information, visit Restaurant.org and find @WeRRestaurants on Twitter, Facebook and YouTube.

Vanessa Sink