April 2024, the Biden administration issued a final rule which implemented a new DOL salary test for white collar workers. With an effective July 1, 2024, the final rule increased the salary threshold for white collar exemptions from $35,568 per year to $43,880 per year. This rule had also scheduled a second increase of the salary threshold to become effective January 1, 2025. The January 2025 salary threshold would increase the required annual earnings from $43,880 to $58,656. Following the implementation of the DOL final regulation, the State of Texas sued the DOL stating that the agency had exceeded its authority under the FLSA. On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the DOL overtime rule that took effect July 1, 2024, the increase scheduled for January 1, 2025, and the automatic increases stipulated by the final rule.
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