Dive Transient:
- A Texas federal decide on Friday struck down the U.S. Division of Labor’s not too long ago expanded time beyond regulation rule nationwide, stripping time beyond regulation eligibility from an estimated 1 million employees, in line with a courtroom submitting.
- U.S. District Court docket Decide Sean Jordan dominated that “the 2024 Rule exceeds the Division’s authority and is illegal.” The ruling vacates DOL’s time beyond regulation rule that modified the edge at which employees certified for time beyond regulation from $35,568 to $43,888 efficient July 1 and would have raised it to $58,656 on Jan. 1, 2025, in line with Littler attorneys.
- Jordan beforehand granted a preliminary injunction to the Texas state authorities days earlier than the rule was to enter impact.
Dive Perception:
The Honest Labor Requirements Act requires employers to pay workers time beyond regulation for working greater than 40 hours in every week however it exempts some govt, administrative, {and professional} (EAP) employees. To be exempt, employees should be salaried, their work should match EAP duties and they should earn a minimal wage, Littler attorneys mentioned.
Jordan dominated that by setting the wage threshold as excessive because it did, DOL created a “de facto ‘wage solely’ take a look at for the EAP exemption,” which exceeded the division’s authority, Littler attorneys mentioned.
The ruling additionally vacated what Littler attorneys known as the rule’s automated “escalator” provision, which might have elevated the wage threshold each three years.
Regardless of the ruling, Littler attorneys warned employers to verify with counsel earlier than rescinding adjustments made in response to the July 1 wage threshold enhance and famous that some states, together with California, New York and Washington, have wage thresholds that exceed the FLSA threshold.
Littler attorneys Maury Baskin, Jim Paretti and Rob Friedman represented a coalition of companies and commerce associations that challenged the time beyond regulation rule.
