On August 31, 2017, a federal district court judge in Texas struck down the Department of Labor’s (“DOL’s”) Obama-era controversial 2016 rule that raised the minimum salary threshold required to qualify for the Fair Labor Standards Act’s “white collar” exemption. Under the proposed regulations, the minimum salary threshold was raised to just over $47,000 per year, and increased the overtime eligibility threshold for highly compensated workers from $100,000 to about $134,000. Ruling in favor of the Plano Chamber of Commerce and various business groups on their motion for summary judgment, Judge Mazzant of the Eastern District of Texas, Sherman Division, held that the DOL had “exceeded its authority and gone too far” with the rule. Noting that the new rule “more than double[d]” the previous salary threshold – from $455 per week ($23,660 annually) to $913 per week ($47,476 annually) – the court determined that the rule improperly made “salary rather than an employee’s duties determinative of whether a ‘bona fide executive, administrative, or professional capacity’ employee should be exempt from overtime pay.”

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