Judge Blocks Overtime Rule Implementation for TX Employees

On June 28, the U.S. District Court for the Eastern District of Texas blocked the enforcement of the U.S. Department of Labor’s (DOL) final rule to raise the minimum salary thresholds for the white-collar overtime exemptions. The judge in the case issued a temporary restraining order (TRO) blocking implementation of the rule for Texas state employees only.

For the rest of the employer community, the rule goes into effect today (July 1). Despite the limited reach of the TRO, this contested rule continues to face legal challenges. Click here to view the final rule.

In April, the DOL promulgated a regulation that would make approximately 4 million additional workers in the U.S. eligible for overtime pay. Under the finalized rule, effective today, most employees making less than $43,888 annually ($844 per week) will be owed time-and-a-half wages when they work more than 40 hours in any single workweek. For highly-compensated employees, the threshold increases from $107,432 to $132,964 annually. Effective Jan. 1, 2025, the salary threshold will increase to $58,656 ($1,128 per week) and $151,164 for highly-compensated employees. Prior to the recently finalized rule, the overtime threshold was $35,568.

TRSA will continue to provide updates on new developments.