On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the Department of Labor’s (DOL) final rule raising the salary thresholds for being exempt from overtime under the Fair Labor Standards Act. The ruling applies nationwide and means that employers do not need to increase employee salaries in January 2025 to maintain their exempt status. It also vacates the July 1, 2024 increase. The court held that each of the three components of the rule exceeded the DOL’s statutory authority under the FLSA.
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