The Department of Labor signaled its willingness to fight for the increased salary threshold established by its final rule, which would have gone into effect in July 2024. The final rule was blocked by a series of federal cases, the most recent of which is Flint Avenue, LLC. v. Department of Labor, et. al.
Background.
In April 2024, a final rule was issued to update the Fair Labor Standards Act’s (FLSA) overtime exemptions for executive, administrative, and professional (EAP) employees. This new rule was to increase the minimum salary thresholds to $844 per week, effective July 1, 2024 and $1,128 per week, effective January 1, 2025. It also introduced a mechanism for future updates.
On November 15, 2024, U.S District Court Judge Sean D. Jordan of the Eastern District of Texas invalidated the DOL’s final rule, finding that it exceeds the agency’s statutory authority under the FLSA by improperly elevating salary over job duties in determining overtime eligibility, contradicting the FLSA’s intent. In December 2024, Judge Sam Cummings also vacated and set aside the rule.
The DOL spokesperson explained, “The Court’s decision to vacate this rule immediately reverses overtime protections for one million workers and stops a provision from going into effect in January that would have guaranteed another three million workers overtime when they worked it.”
In the DOL’s final rule, published in the Federal Register on April 26, 2024, the agency estimated that approximately one million employees who earn at least $684 per week but less than $844 per week would be affected by the first update on July 1, 2024. Additionally, another three million employees earning at least $844 per week but less than $1,128 per week would be impacted starting January 1, 2025.
Appeals and current status.
The DOL filed two separate appeals in the 5th District Court of Appeals to attempt to overturn these rulings. Despite the current administration’s vocal opinions on overtime pay, the most recent move by the DOL to challenge the rule’s blockage indicates a possibility of its return, at least in part.
The case is Flint Avenue v. U.S. Department of Labor, U.S. District Court for the Northern District of Texas, No. 5:24-cv-00130, 02/28/2025.
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