The U.S. District Court for the Eastern District of Texas has ruled in favor of small businesses by vacating a Department of Labor (DOL) rule concerning overtime pay. The case, Plano Chamber of Commerce, et al v. DOL, challenged the increase in the minimum salary threshold for exempt employees under the Fair Labor Standards Act’s (FLSA) executive, administrative, or professional exemption.
Beth Milito, Executive Director of NFIB’s Small Business Legal Center, commented on the decision: “On behalf of the thousands of small businesses who have been adversely impacted by the 2024 overtime rule, NFIB is grateful to the Court for putting an end to this onerous regulation.” She added that the rule "overcomplicated" exemption determinations and increased labor costs significantly for small businesses.
NFIB argued that the overtime rule exceeded DOL's statutory authority under both FLSA and the Administrative Procedure Act. They joined other organizations in filing this lawsuit against DOL.
The NFIB Small Business Legal Center continues to advocate for small business rights in courts across various levels including federal and state jurisdictions as well as in front of the U.S. Supreme Court.