U.S. District Court Vacates DOL’s Rule Increasing Salary Levels for Exempt Employees

Headshot - Peg O'Brien
Margaret "Peg" O'Brien
Director, Litigation Department and Chair, Employment Law Group
Published: Employment Law Business Guide
November 18, 2024

On Friday, November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the federal Department of Labor’s (“DOL”) final rule (“Final Rule”) raising the minimum salary thresholds for the Fair Labor Standard Act’s (“FLSA”) white collar overtime exemptions.  Although it is a decision of a trial level court, and therefore subject to appeal, the decision presently applies nationwide.  This means that the pre-July 1, 2024 white-collar exempt salary thresholds have been reinstated and, unless the legal landscape changes, the January 1, 2025 salary increases to the salary exempt thresholds will not take effect.

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