Department of Labor Overtime Exemption Final Rule Update

On July 1, 2024, the Department of Labor’s (DOL) new overtime (OT) salary threshold rule goes into effect nationwide, including employers in Texas.

However, there is a limited exception that only applies to the state of Texas as an employer. On June 28, 2024, a federal district court judge for the Eastern District of Texas issued a very limited injunction blocking enforcement of the DOL’s final rule against the state of Texas.

The court’s injunction only applies to the state of Texas in its role as an employer and government employees employed by the state of Texas. As part of an ongoing lawsuit, this preliminary injunction will block the final rule from being enforced until the lawsuit is resolved between the DOL and the state of Texas.

Other lawsuits also challenging the final rule are working through the judicial system, including one with a request for a nationwide injunction. Decisions in those cases are still pending.  

Next Steps

Employers should monitor the situation regularly and prepare for compliance on July 1, 2024.  Paylocity will continue to monitor developments and provide updates as they occur.

Thank you for choosing Paylocity as your payroll tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.