Fair Labor Overtime Salary Thresholds Act overturned

Earlier in 2024, the U.S. Department of Labor (DOL) completed rulemaking proceedings on updates to the Fair Labor Standards Act Overtime Salary Thresholds and other employment law provisions. That rule change would require employers to adjust their exempt/nonexempt employee classifications based on new salary thresholds. 

Last week, a federal judge in Texas overruled the DOL rule, preventing it from going into effect. The Department of Labor may appeal this ruling in the conservative 5th U.S. Circuit Court.

"Any appeal would face a significant uphill battle, and given the outcome of the election, the Administration is likely not to pursue the appeal," said Ryan Sempf, Executive Director, Government Affairs at the Chamber. "The court ruling is a significant victory for business owners, who will now see the previous salary threshold for overtime revert back to $35,500," he said.

For background, the Chamber provided a detailed breakdown of this rule earlier this year: Q&A with Lane & Waterman.