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Federal Court Sets June 24 Hearing Date on Challenger to the DOL Rule Raising Salary Threshold for Exempt Employees

Friday, June 21, 2024 8:58 AM | Anonymous member (Administrator)
  • The U.S. Department of Labor’s Final Rule raising the minimum salary level requirements for application of the Fair Labor Standards Act (FLSA) “White Collar” Exemptions is scheduled to take effect July 1, 2024. Lawsuits, however, have been filed seeking to invalidate and set aside the Final Rule and to block the increased salary thresholds from taking effect.
  • In May, a coalition of business groups filed suit challenging the Final Rule in the federal court for the Eastern District of Texas (Plano Chamber of Commerce v. U.S. Department of Labor). Earlier this month, the state of Texas sued in the same court. (State of Texas v. United States Department of Labor). The plaintiffs have asked the court to consolidate the cases, and the court has set a June 24 hearing on the plaintiffs’ motion for injunctive relief preventing the DOL from implementing the rule.
  • Earlier this month, a public interest law firm that focuses on challenging “unlawful administrative power” brought a complaint in another Texas district court. The suit was brought on behalf of a small business whose employees are currently overtime exempt but will lose the exemption when the new salary floor takes effect.
  • In both pending cases, a decision is expected to be issued before July 1.

CATA Dealer Members are provided free Employee Relations and HR support through SESCO. If you have any questions, contact SESCO at 1-800-764-4127; sesco@sescomgt.com or via your Consultant of Record, Ms. Jamie M. Hasty, Vice President, jamie@sescomgt.com or 804-931-6281.

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