Court Enjoins FLSA Salary Threshold Increase - But Only for Employees of the State of Texas

As we previously reported, the U.S. Department of Labor (DOL) issued on April 23, 2024, a final rule imposing a substantial increase to the salary threshold required for the “white collar” exemptions to the Fair Labor Standards Act’s minimum wage and overtime requirements. As expected, litigation ensued, and on Friday, the U.S. District Court for the Eastern District of Texas preliminarily enjoined the rule as likely unlawful. Importantly, however, the injunction is only applicable to employees of the state of Texas.
There is a similar challenge to the rule still pending on behalf of various Texas businesses in which no preliminary injunction was sought. This case, as well as other ongoing litigation, may eventually undermine the salary threshold increases more broadly in the future. But for now, the rule stands for all employers other than the state of Texas, meaning the $844/week salary threshold goes into effect as scheduled today.
Steve Palazzolo recorded a special Law Shanty video on this breaking news. He provides a brief overview of the opinion and addresses whether the rule may ultimately be enjoined nationwide. Steve also provides insight into Friday’s U.S. Supreme Court decision overturning the Chevron doctrine and how this intersects with the DOL’s ruling. To watch the video, click on the video link below.