On June 28, 2024, the U.S. District Court for the Eastern District of Texas issued a decision in the Texas attorney general’s case challenging the U.S. Department of Labor’s final rule on Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees. The judge in the case issued a limited preliminary injunction blocking implementation of the rule for employees of the state of Texas only.

ABC, as a member of the Partnership to Protect Workplace Opportunity, called upon the U.S. Department of Labor’s Wage and Hour Division to stay the effective date of its final overtime rule to allow for judicial review, as there are currently several cases that could impact the validity of the new rule. The final rule is currently set to go into effect on July 1, 2024. Read the PPWO’s statement on the June 12 letter to the DOL.

On May 22, ABC joined a coalition of business groups in filing a complaint in the U.S. District Court for the Eastern District of Texas, Sherman Division, challenging the U.S. Department of Labor’s controversial final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, which will change overtime regulations under the Fair Labor Standards Act. Read ABC’s news release announcing the lawsuit.

Both the U.S. Senate and U.S. House of Representatives held hearings in early May featuring testimony from U.S. Department of Labor Acting Secretary Julie Su, the sole witness at both events, to review the president’s Fiscal Year 2025 Budget Request for the Department of Labor and discuss the policies and priorities of the department.

On April 23, the U.S. Department of Labor issued its final rule on overtime, which will change overtime regulations under the Fair Labor Standards Act. The final rule increases the minimum annual salary level threshold for exemption in two phases: from the current level of $35,568 to $43,888 on July 1, 2024, and to $58,656 on Jan. 1, 2025. In addition, the threshold for highly compensated employees will be increase from the current threshold of $107,432 to $132,964 on July 1 and then to $151,164 on Jan. 1. Further, salary thresholds will update every three years starting on July 1, 2027.

The Partnership to Protect Workplace Opportunity, of which ABC is a steering committee member, created a grassroots toolkit for members to respond to the U.S. Department of Labor’s new overtime proposed rule. The grassroots portal allows you to send model comments directly to the DOL as well as a model letter to your senators and representative in Congress opposing the new proposed rule. The deadline to submit comments is no later than Nov. 7.