Federal Court Strikes Down Final Overtime Rule Increasing Salary Threshold for White Collar Exemptions
On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated and set aside the U.S. Department of Labor’s Final rule, entitled Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, on a nationwide basis. Pursuant to the rule, the first increase in the overtime threshold took effect on July 1, 2024, and was set to increase again on January 1, 2025. As a result of the recent ruling, the January 1, 2025 increase will not go into effect, and the initial increase on July 1, 2024 is nullified.