DOL Injunction on FLSA Overtime Limited to TX

Department of Labor injunction limited to Texas only – Minnesota employers need to be in compliance with new DOL salary threshold today.

The United States District Court Eastern District of Texas has issued an order preventing the new DOL salary threshold from going into effect for the State of Texas, as an employer, only. This limited scope ruling means that, as of today, the new DOL salary thresholds are in effect for Minnesota employers.

Under the new rule the annual salary threshold required to exempt a salaried worker from federal overtime pay requirements increased from $35,568 to $43,888. On January 1, 2025, the salary threshold will again increase to $58,656, and then at least every three years thereafter additional increases will occur. These increases primarily affect employees classified as exempt under the administrative, executive, and professional exemptions.

There are additional legal cases pending and additional orders regarding a larger-scale injunction may be made prior to the January 1, 2025, compliance deadline. Employers should continue to monitor the situation and have a plan in the event: (1) the January 1, 2025, increase takes effect; or (2) a larger-scale injunction is issued.

If you have questions about this new rule or any other employment law related questions, please contact one of the Blethen Berens employment law attorneys.