Friday afternoon, a federal judge in Texas struck down the Department of Labor’s (“Department’s”) overtime rule (“Overtime Rule”) finding that the Overtime Rule exceeded the Department’s authority and was unlawful.
In the Opinion, the court issued a vacatur which sets aside the rule and makes it no longer binding. This vacatur of the Overtime Rule reverts the state of the law back to the pre-Overtime Rule landscape, including reversing the increase that just took effect on July 1, 2024. The previous salary threshold of $35,558 will now be back in effect.
The Department has the opportunity to appeal this decision, so it will be important for employers to stay up to date.
