Small businesses have achieved a significant legal victory with the U.S. District Court for the Eastern District of Texas ruling against an overtime threshold rule on November 15. The National Federation of Independent Business (NFIB) filed a lawsuit challenging the Department of Labor’s (DOL) regulation, which aimed to increase the minimum salary threshold for exempt employees. NFIB collaborated with several other organizations in this legal action.
Following the court's decision, the minimum salary threshold reverts to $35,568, and the threshold for highly compensated employees returns to $107,432. The court found that the rule, which had been implemented in July of this year, exceeded the DOL’s statutory authority and invalidated it nationwide.
Beth Milito, Executive Director of the NFIB Small Business Legal Center, stated: “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. This rule overcomplicated the process for determining EAP exemptions and exponentially increased labor costs for thousands of small businesses. Today’s decision will provide substantial relief for Main Street firms.”
The NFIB Small Business Legal Center continues its mission to protect small business owners' rights in courts across the nation. Currently, NFIB is involved in more than 40 cases at both federal and state levels as well as before the U.S. Supreme Court.