Texas Court Invalidates Dept. of Labor's Overtime Rule

11/20/24

District Judge Jordan agreed with the business groups challenging the rule that the Department of Labor (DOL) exceeded its statutory authority by imposing a salary level that "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 judge also said DOL's automatic updates to the minimum salary threshold every three years "violates the notice-and-comment rulemaking requirements of the Administrative Procedure Act."

In light of the court's decision, the minimum salary threshold is once again set to $35,568, and the threshold for "highly compensated employees" is set to $107,432.

The Department of Labor can still appeal.