Court Strikes Down DOL’s White Collar Exemption Salary Increase Nationwide

On November 15, a federal district court overturned the U.S. Department of Labor’s (DOL) final regulations that sought to raise the minimum salary thresholds for the "white collar" exemptions under the Fair Labor Standards Act (FLSA). These exemptions include executive, administrative, professional, outside sales, and computer employees [Texas v. U.S. Department of Labor, No. 4:24-cv-499 (E.D. Texas, Nov. 15, 2024)].



The court determined that all three components of the regulation exceeded the DOL's statutory authority under the FLSA. This decision applies nationwide. Previously, in June, the same court issued a preliminary injunction preventing the rule from being enforced within Texas.


Impact of the Ruling

The overtime salary threshold increase, set to take effect on January 1, 2025, will no longer proceed. Additionally, the court invalidated the July 1, 2024, increase that had already taken effect. While many employers may have adjusted salaries in anticipation of compliance, the ruling reverts the minimum salary requirement to the prior threshold of $684 per week ($35,568 annually).


It remains unclear whether the DOL will appeal the court’s decision.

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