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Warner Norcross + Judd LLP is a corporate law firm with over 230 attorneys serving clients in nine offices throughout Michigan. Among the largest law firms in Michigan, Warner works in virtually all areas of business law.

Michigan Law Firm - Warner Norcross + Judd LLP

As we reported <a href="https://www.wnj.com/updates/ftc-bans-noncompete-clauses-in-the-employment-context-and-dol-imposes-substantial-increase-to-salary-threshold-for-flsa-white-collar-exemptions/">here</a>, the U.S. Department of Labor (DOL) issued on April 23, 2024, a <a href="https://www.dol.gov/sites/dolgov/files/WHD/flsa/ot-541-final-rule.pdf" target="_blank" rel="noreferrer noopener">final rule</a> imposing a substantial increase to the salary threshold required for the “white collar” exemptions to the Fair Labor Standards Act’s minimum wage and overtime requirements. As expected, litigation ensued, and on Friday, the U.S. District Court for the Eastern District of Texas preliminarily enjoined the rule as likely unlawful. Importantly, however, the injunction is only applicable to employees of the state of Texas.

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There is a similar challenge to the rule still pending on behalf of various Texas businesses in which no preliminary injunction was sought. This case, as well as other ongoing litigation, may eventually undermine the salary threshold increases more broadly in the future. But for now, the rule stands for all employers other than the state of Texas, meaning the $844/week salary threshold goes into effect as scheduled today.

Warner Employment News from the Law Shanty

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Steve Palazzolo recorded a special Law Shanty video on this breaking news. He provides a brief overview of the opinion and addresses whether the rule may ultimately be enjoined nationwide. Steve also provides insight into Friday’s U.S. Supreme Court decision overturning the <a href="https://www.wnj.com/updates/chevron-doctrine-is-dead-40-years-of-agency-deference-overturned/" target="_blank" rel="noreferrer noopener">Chevron</a> doctrine and how this intersects with the DOL’s ruling. To watch the video, click on the video link below.

Court Enjoins FLSA Salary Threshold Increase – But Only for Employees of the State of Texas

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If you have any last-minute questions about complying with this salary threshold increase, please contact your Warner attorney or any member of Warner’s Labor and Employment or Employment Litigation Practice Groups.

Warner Employment News from the Law Shanty

Senior Counsel

Steve Palazzolo

Employment Litigation

Labor and Employment

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Court Enjoins FLSA Salary Threshold Increase – But Only for Employees of the State of Texas

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