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Texas Court Overturns DOL Overtime Rule Changes

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FOR IMMEDIATE RELEASE
Texas Court Overturns DOL Overtime Rule Changes

Pepperell, MA (November 20, 2024): Capstone Certified HR Advisors LLC, a leading provider
of HR consulting services and a proud member of the Nashoba Valley Chamber of Commerce,
wishes to inform businesses and employees about a recent court decision impacting overtime
regulations. A Federal Judge in the Eastern District of Texas has overturned the U.S.
Department of Labor's (DOL) planned changes to the Fair Labor Standards Act (FLSA) overtime
rule.

The court held that the U.S. Department of Labor (DOL) rules exceed their authority under the
FLSA. The November 15 ruling vacates and sets aside the final rules nationwide. As a result,
employers do not have to increase the salary of exempt employees to preserve their
exemption status. This ruling reverses the salary threshold increase that went into effect in
July 2024 and prevents the further increase scheduled for January 1, 2025.

The FLSA establishes standards for minimum wage, overtime pay, recordkeeping, and child
labor. The DOL's changes to the overtime rule aimed to increase the salary threshold for
employees to be exempt from overtime pay. However, the Texas court found that the DOL
exceeded its authority in making these changes. This decision reverts the salary threshold back
to the previous level of $684 per week ($35,568 annually).

While the DOL has the right to appeal this decision, it is anticipated that the incoming Trump
Administration will support the court's ruling. This decision has significant implications for
employers and employees alike. Capstone Certified HR Advisors LLC encourages businesses to
review their employee classifications, pay practices, and ensure compliance with the revised
regulations.

About Capstone Certified HR Advisors LLC: Capstone Certified HR Advisors LLC provides expert
HR guidance and support to businesses of all sizes. Their services include compliance audits,
policy development, employee relations, and HR training.
For more information contact: Capstone Certified HR Advisors LLC
P: 978-743-6705
Jennifer.morales@capstonecertified.com
info@capstonecertified.com 41 Lowell Rd, #369, Pepperell, MA 01463
+01-978-743-6705 www.capstonecertified.com

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