The United States District Court for the Eastern District of Texas has rendered the entire Overtime Rule published earlier this year invalid. The court held that the substantial minimum salary threshold effectively rendered the duties test redundant, effectively transforming the determination of employee exemptions into a “Salary Only Test.” Furthermore, the court found that the provision adjusting the minimum salary every three years violated the notice-and-comment requirement mandated by the Administrative Procedures Act.

Consequently, the minimum salary has been restored to the level of $35,568, which prevailed prior to July 1, 2023. The Department of Labor (DoL) retains the option to appeal the decision, but many anticipate that the defense of the rule will be abandoned in light of the recent election results. 

More to follow.