All eyes have been on the Texas federal courts this past week awaiting rulings on whether and to what extent the new salary threshold for exempt employees under the U.S. Department of Labor 2024 white-collar overtime regulations would go into effect on July 1, 2024. We have the answer – for now.
The new overtime salary threshold of $844 per week ($43,888 annualized) for exempt executive, administrative, and professional employees is in effect as of July 1, 2024, with the exception of public employees of the State of Texas.
Three challenges to the DOL overtime salary threshold are pending in Texas federal courts. In the first, the federal court in the Eastern District of Texas late Friday granted Texas’ motion for preliminary injunction, halting the implementation of both the July 1, 2024 and the January 1, 2025 implementation of the new salary threshold rule – but only as to the State of Texas as an employer. The injunction does not apply to other employers in Texas nor nationwide.
Yesterday, the federal court in the Northern District of Texas refused to grant a preliminary injunction sought by marketing company Flint Avenue. The third case brought by the Plano Chamber of Commerce, also in the Eastern District of Texas, did not seek a preliminary injunction.
All three legal challenges will continue in litigation, and the courts could make more sweeping changes to the DOL overtime salary threshold rules at the motion for summary judgment stage of the proceedings. Indeed, the federal judge issuing Texas’ preliminary injunction indicated that the overtime salary threshold rule is “likely unlawful.”
We will continue to monitor the cases and provide updates on the status of the overtime salary threshold rules as we see additional developments. At this time, covered employers should take steps to implement the first phase of the new $844 weekly salary threshold for their exempt executive, administrative, and professional employees to maintain their exempt status.
