White Collar FLSA Exemption Threshold Takes Effect July 1

As we previously reported here, the Department of Labor promulgated a new rule that increases the requisite salary level for the “white collar” executive, administrative, and professional (“EAP”) exemptions from the Fair Labor Standards Act’s overtime requirements. We also previously reported that the State of Texas filed a lawsuit challenging the DOL’s authority to enact the rule. This lawsuit was being closely watched to determine if the court would enjoin the rule prior to the initial July 1 implementation date. 

On Friday, June 28, 2024, the court declined to issue a nationwide preliminary injunction. The court found that the rule was “likely unlawful,” but issued a preliminary injunction enjoining the Department of Labor from enforcing the rule only against Texas, the plaintiff-employer in the case. As a result, the court issued a narrow injunction limited to the State of Texas in its capacity as an employer. Therefore, the new EAP exemption salary threshold for all other employers is now $844 per week under the FLSA. Other challenges to the rule are pending. We will monitor any developments, including any appeals or additional challenges to the rule. For now, the rule is in effect. If you have any questions about the rule, please contact one of Honigman’s Labor and Employment attorneys.