Federal Overtime Rule Blocked for Texas State Employees by U.S. District Court
The U.S. District Court for the Eastern District of Texas has blocked the implementation of a new federal overtime rule for Texas state employees. This decision was made just days before the rule was set to increase the minimum salary threshold for white-collar exemptions from overtime requirements. The rule, which was to take effect on July 1, aimed to raise the salary threshold from $35,568 to $43,888 annually, with a further increase to $58,656 scheduled for January 1, 2025. The court's decision reflects concerns that the rule represents an unlawful approach similar to a 2016 rule previously halted by the court. The Department of Labor (DOL) acknowledged the rule's implementation would incur significant costs, though it argued these would be relatively low for Texas. The court's injunction applies to all provisions of the 2024 rule, including automatic salary threshold increases every three years starting in 2027. 
