Dive Temporary:
- A Texas federal decide on Friday struck down the U.S. Division of Labor’s just lately expanded additional time rule nationwide, stripping additional time eligibility from an estimated 1 million employees, in keeping with a court docket 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 additional time rule that modified the brink at which employees certified for additional time from $35,568 to $43,888 efficient July 1 and would have raised it to $58,656 on Jan. 1, 2025, in keeping 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 Truthful Labor Requirements Act requires employers to pay workers additional time for working greater than 40 hours in per week nevertheless it exempts some govt, administrative, {and professional} (EAP) employees. To be exempt, employees have to be salaried, their work should match EAP duties and they should earn a minimal wage, Littler attorneys stated.
Jordan dominated that by setting the wage threshold as excessive because it did, DOL created a “de facto ‘wage solely’ check for the EAP exemption,” which exceeded the division’s authority, Littler attorneys stated.
The ruling additionally vacated what Littler attorneys known as the rule’s computerized “escalator” provision, which might have elevated the wage threshold each three years.
Regardless of the ruling, Littler attorneys warned employers to test with counsel earlier than rescinding modifications 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 additional time rule.