Real World Impact: On September 11, 2024, in Mayfield v. Department of Labor, the U.S. Court of Appeals for the Fifth Circuit upheld the Department of Labor’s (DOL) authority to set minimum salary thresholds for overtime exemptions under the Fair Labor Standards Act (FLSA). This decision reinforces the DOL’s ability to require a minimum salary for executive, administrative, and professional (EAP) exemptions, known as “white-collar” exemptions.
Articles Discussing Overtime Exemptions Under The FLSA.
Fifth Circuit Holds DOL Can Set Salary Floor for White-Collar Exemptions
Fifth Circuit Upholds DOL’s Minimum Salary Requirement for FLSA White-Collar Exemptions
On September 11, 2024, the U.S. Court of Appeals for the Fifth Circuit upheld the U.S. Department of Labor’s (DOL) authority to use a salary basis to define its white-collar overtime exemptions.
DOL’s Salary Rule for Exempt Employees In Jeopardy After Fifth Circuit Oral Argument
A Fifth Circuit panel heard oral argument on Wednesday, August 7, on whether Department of Labor (DOL) regulations imposing a salary requirement to satisfy the executive, administrative and professional exemptions is valid.
The case on appeal, Mayfield v U.S. Department of Labor, does not address the minimum salary level increase
WEBINAR: Exempt Employees in Light of the Department of Labor’s Salary Threshold Increase
Here’s an opportunity to learn more – and ask questions – about the Department of Labor’s new rule to increase the compensation thresholds for exempt employees.
MYR 2024: DOL Final Rule Governing the White-Collar Exemptions to Overtime
By almost any measure, 2024 is a memorable year for employment and labor law — and it’s only halfway done. Our timely report, Mid-Year 2024: Now + Next, takes a closer look at the recent rules, regulations and rulings affecting employers today, the rest of the year and beyond.
New Update on Litigation Challenging the DOL’s 2024 Salary Rule
Executive Summary: On July 1, 2024, the federal court for the Northern District of Texas issued a decision in Flint Avenue, LLC v. U.S. Department of Labor, denying the plaintiff employer’s request for a nationwide preliminary injunction, finding that the small employer, who had only one employee who would potentially be affected by the DOL’s July 1, 2024 salary increase, did not show irreparable harm.
Federal Judge in Northern District of Texas Denies Nationwide Preliminary Injunction to Block the DOL’s New Overtime Rule
On July 1, 2024, the U.S. District Court for the Northern District of Texas refused to block the enforcement of the new U.S. Department of Labor (DOL) rule to raise the minimum salary thresholds for the white-collar overtime exemptions, finding that the allegedly exempt employee at the center of the
Labor Department Rule Raising Salary Level for Exempt Employees Takes Effect (For Now)
A federal judge in Texas has enjoined the Department of Labor (DOL) from enforcing its Final Rule raising the minimum salary level requirements for executive, administrative, and professional (EAP) exemptions to the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). State of Texas v. U.S. Dep’t of Labor, No. 4:24-cv-499-SDJ (E.D. Tex. June 28, 2024). The injunction, however, only bars the DOL from enforcing the increase as to Texas government employees. The court did not grant the requested nationwide injunctive relief.
Status of Litigation Challenging the DOL’s 2024 Salary Rule
Real World Implications of Challenges to the Rule: A federal district court in Texas has enjoined the DOL’s 2024 Salary Rule (which takes effect today, July 1, 2024) for employees of the state of Texas, and we anticipate a nationwide injunction applicable to private employers sometime this week, possibly even today. In light of the litigation challenging the rule, we recommend employers make no changes to the exempt status of employees at this time and wait to see if the court issues a nationwide injunction.
Texas District Court Narrowly Enjoins White-Collar Overtime Regulations
On June 28, 2024, the U.S. District Court for the Eastern District of Texas issued a limited injunction of the U.S. Department of Labor’s new regulations increasing the minimum salary that certain executive, administrative, and professional (EAP) employees must be paid to qualify for the so-called “white-collar” exemption under the
Texas Federal Court Delays Effective Date of the DOL’s New Overtime Rule as Applied to Texas as an Employer
On June 28, 2024, a judge for the U.S. District Court for the Eastern District of Texas blocked the enforcement of the new U.S. Department of Labor (DOL) rule to raise the minimum salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar overtime exemptions against the state of Texas.
Texas District Court Blocks DOL Rule Increasing Salary Level for Exempt Employees. But Rule Enjoined as to State of Texas Employees Only (For Now)
In a strongly worded opinion, a federal judge in Texas held the U.S. Department of Labor (DOL) likely exceeded its authority in implementing its Final Rule raising the minimum salary level requirements for executive, administrative, and professional (EAP) exemptions to the minimum wage and overtime requirements of the Fair Labor
Texas Seeks Order Blocking Enforcement of DOL’s New Overtime Rule Ahead of July 1 Effective Date
The U.S. Department of Labor’s (DOL) new rule to raise the minimum salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar overtime exemptions could be delayed as it faces multiple legal challenges, alleging the department lacked the authority to set a salary test.
Fifth Circuit Reminds Employers To Follow Salary Basis Test or Lose FLSA Overtime Exemptions
On May 24, 2024, the US Court of Appeals for the Fifth Circuit in New Orleans, which covers Louisiana, Mississippi, and Texas, recently upheld a district court’s decision that two highly compensated IT engineers were not properly paid on a salary basis and, therefore, not exempt from the Fair Labor Standards Act’s (FLSA) overtime requirements. The Fifth Circuit’s opinion reiterates that no matter how much money an employee earns, a guaranteed weekly salary must be paid in accordance with the FLSA’s specific rules and regulations in order to maintain most exemptions from the overtime pay requirements.