Today, the U.S. District Court for the Eastern District of Texas vacated and set aside the U.S. Department of Labor (DOL)’s final regulation increasing the salary threshold for the “white collar” overtime exemption under the Fair Labor Standards Act (FLSA) on a nationwide basis. This legal victory comes as a result of a lawsuit brought by NAW and a coalition of trade associations who argued DOL exceeded its authority under the FLSA, and the rule is arbitrary and capricious under the Administrative Procedure Act.
The court held that each of the three components of the Overtime Rule exceeded the DOL’s statutory authority under the FLSA.
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