On May 22, 2024, a group of national business associations filed a lawsuit in an attempt to stop the U.S. Department of Labor from implementing its new Final Rule on overtime. The new rule significantly increases the annual salary threshold needed to classify employees as exempt under the Fair Labor Standards Act (FLSA). The threshold is set to increase to around $43,888 per year on July 1, 2024 and then to $58,656 per year on January 1, 2025. Additionally, the rule includes automatic increases every three years starting on July 1, 2027.
The lawsuit was filed in the United States District Court for the Eastern District of Texas under the case Plano Chamber of Commerce, et al., v. Su, et al., No. 4:24-cv-00468, E.D. Tex. The plaintiffs challenge the legal authority of the DOL to increase the minimum salary thresholds for executive, administrative
