The U.S. District Court for the Eastern District of Texas vacated the Biden administration’s overtime rule less than two months before the full effective date. The increase in the overtime threshold to $59k, scheduled to become effective on January 1, 2025, will not go into effect. The increase to $44k that had previously taken effect on July 1, 2024 is nullified.
The court found the U.S. Department of Labor exceeded its authority by raising the salary threshold for exemptions too high and allowing for automatic adjustments every three years. The rule was struck down on a nationwide basis.