Update on DOL Overtime Rule Effective Tomorrow!

June 30, 2024

On Monday, July 1, the first phase of the Overtime Rule’s salary threshold increase will go into effect for most, bringing the new salary threshold to $43,888 annually for exempt executive, administrative, and professional employees. 

The recent order issued on the hearing this week in State of Texas v. United States Department of Labor granted a limited injunction only preventing the enforcement of the rule for the State of Texas as an employer. The Texas case has also been consolidated with the Plano Chamber of Commerce v. United States Department of Labor filed on the same issue of the new salary thresholds set by the Overtime Rule and in the same Texas district. There remains a third ongoing and unconsolidated case, Flint Avenue LLC v. U.S. Department of Labor, filed on the Overtime Rule, but in a separate northern Texas district. 

Though the injunction was limited, the findings that Texas is likely to succeed on the merits in support of the injunction appeared to set a high bar for the U.S. Department of Labor to overcome in a final order. 

Lydia Dawson, JD