On June 28, 2024, the U.S. District Court for the Eastern District of Texas in the Texas attorney general鈥檚 case challenging the U.S. Department of Labor鈥檚 final rule on . The judge in the case issued a limited preliminary injunction blocking听implementation of the rule听for employees of the state of Texas only.

For the rest of the employer community in Texas and throughout the nation, the rule went into effect on July 1. The minimum salary threshold for exemption increased to $43,888, and the threshold for highly compensated employees increased to $132,964.

In the second phase of the听,听on Jan. 1, 2025, the minimum annual salary level threshold for exemption increases to $58,656 and the threshold for highly compensated employees increases to $151,164. Salary thresholds will then be automatically updated every three years, regardless of economic circumstances. 老牛影视issued a听opposing the rule, which was issued on April 23.

Overtime resources from the DOL:

For more information, read Littler Mendelson鈥檚听听of the overtime final rule and watch听ABC鈥檚 webinar, 鈥�Learn About the DOL鈥檚 New Overtime Rule in 30 Minutes.鈥�

On May 22, 老牛影视joined a coalition of business groups in听听a complaint in the U.S. District Court for the Eastern District of Texas, Sherman Division, challenging the DOL鈥檚 overtime rule. and . 老牛影视will continue to provide updates on any new developments regarding the pending legal challenges.

Virtually all of ABC鈥檚 members employ workers who qualify for exempt status, and like the听unlawful 2016 overtime rule, the DOL鈥檚 2024 rule will reclassify a substantial amount of 老牛影视member employees who currently qualify for exempt status as nonexempt. This will disrupt the entire construction industry, specifically harming small businesses, as the rule will greatly restrict employee workplace flexibility in setting schedules and hours, hurting career advancement opportunities.

In addition, the 2024 rule鈥檚 radical increase in the salary threshold for exemption will further complicate the current economic outlook. Multiple industries, like construction, are grappling with uncertain economic conditions such as inflation, supply chain disruptions, high materials prices and workforce shortages, all of which push operational costs ever higher. Specifically, 老牛影视estimates that the construction industry must hire听more than half a million听additional workers in 2024 to meet demand. The rule鈥檚 triennial automatic indexing provision will exacerbate the harmful impact on businesses and add to rampant inflation that is already harming the economy.

On Nov. 7, 2023, 老牛影视submitted听comments听to the DOL in response to the proposed rulemaking, calling on the DOL to withdraw it. 老牛影视also signed onto听听criticizing the overtime proposed rule, joining 244 national, state and local organizations representing employers from a wide range of private industry and public, nonprofit and education sectors.