On Nov. 26, 2024, the U.S. Department of Labor (DOL) filed a notice of appeal seeking to overturn the recent decision by the U.S. District Court for the Eastern District of Texas that vacated the DOL’s final rule. The final rule amended requirements that employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The District Court’s ruling set aside the final rule’s increases to the standard salary level nationwide, returning the salary threshold to the pre-July 2024 threshold.
On Nov. 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the DOL’s final rule on a nationwide basis, returning the standard (overtime) salary level to $684 per week ($35,568 per year) and $107,432 per year for HCEs.
While many legal experts expected the DOL to appeal the District Court’s decision to vacate the salary increase that went into effect in July and the increase set for January, as well as the future automatic salary level increases for employers nationwide, the future of the appeal is uncertain. The incoming Trump administration and the agency’s change in leadership will likely impact the DOL’s appeal. President-elect Donald Trump named Rep. Lori Chavez-DeRemer as the secretary of labor (this nomination must still be confirmed by the U.S. Senate). Under new agency leadership and presidential administration, the DOL may abandon the appeal altogether or undertake new rulemaking to implement different overtime thresholds. Employers should monitor the situation for updates.