Federal Court Vacates USDOL's Overtime Rule Nationwide and Retroactive to Pre-July 2024 Threshold

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 (DOL)’s final regulation increasing the salary threshold for the “white collar” overtime exemption under the Fair Labor Standards Act (FLSA). The ruling by Judge Sean D. Jordan of the U.S. District Court for the Eastern District of Texas applies nationwide.

The court held that each of the three components of the rule exceeded the DOL’s statutory authority under the FLSA. And given the nationwide scope of the rule, it concluded that the rule is struck down on a nationwide basis. This ruling sets aside the final rule’s increases to the standard salary level nationwide, returning the salary level thresholds to the pre-July 2024 threshold.

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