| The State of Texas is challenging the U.S. Department of Labor’s (DOL) rule titled “Defining and Delimiting the Exemptions for Executive Administrative Professional Outside Sales and Computer Employees.” This Rule raises the salary threshold for overtime exemption under the Fair Labor Standards Act (FLSA), continuing a practice that the DOL has followed for over eight decades. The Rule ensures that employees who work more than 40 hours a week receive fair overtime compensation unless they fall under certain exemptions.
The plaintiffs in this case argue that DOL’s new rule exceeds its authority, including in light of the Supreme Court’s recent decision in Loper Bright Enterprises v. Raimondo. This decision overruled the Chevron doctrine, saying courts should not automatically defer to agency interpretations of statutes. Texas asked a federal district court to stop the effects of the DOL’s rule for all employees working for the State of Texas, a request granted on June 28, 2024. However, the ultimate goal of the plaintiffs in this case is to invalidate the rule completely. On August 15, several law professors represented by Democracy Forward filed an amicus brief in the Eastern District of Texas supporting the Department of Labor’s rule. We argue that the DOL has the clear authority to establish and adjust the salary threshold for overtime exemptions under the FLSA. |