District Court Grants Injunction of 2024 Overtime Rule Limited to State of Texas as Employer

On Friday, June 28th, 2024, a federal district judge granted the State of Texas’s motion for a preliminary injunction to delay the implementation of the 2024 Overtime Rule, determining that the rule is “likely unlawful.” This decision is specifically limited to the State of Texas as an employer

The 2024 Overtime Rule proposed significant changes to the minimum salary requirements for employees classified as executive, administrative, or professional (EAP). Initially, the rule aimed to increase the minimum salary for exemption from $684 per week ($35,568 annually) to $844 per week ($43,888 annually) starting July 1, 2024. A further increase to $1,128 per week ($58,656 annually) was scheduled to take effect on January 1, 2025 

The court concluded that Texas is likely to succeed in its claim that the changes to the minimum salary level in the 2024 Rule contradict the plain text of the EAP Exemption. Consequently, the court found that the 2024 Rule exceeds the Department of Labor’s authority to define and delimit the EAP Exemption 

The court emphasized that the law neither requires nor prohibits nationwide relief. Since the only party seeking relief in this case is the State of Texas, and Texas has provided evidence of its own injuries as an employer without demonstrating harm to other entities or individuals, the court decided that a preliminary injunction focused solely on Texas is appropriate