A couple months back, we reported the new rule from the Department of Labor that is set to raise the minimum weekly salary for the “Executive, Administrative, and Professional Employee” (EAP) exemption from $684 per week to $844 per week, or $43,888 per year, on July 1.  The threshold would then increase to $1,128 per week on January 1, 2025.  Many employers were not in any real danger of running afoul of the new rule, as they have come to realize, especially over the last few years, that providing a decent rate of pay is essential to keeping employees.

However, not one, but three lawsuits have been filed in the state of Texas, including a lawsuit filed by the State of Texas, in effort to halt the implementation of the new rule.  The lawsuit filed by the state alleges that the 2024 rule violates the federal Administrative Procedures Act, as well as the Constitution.  Clearly, everything is bigger in Texas, except for the wages, amiright??

The three lawsuits have all asked for preliminary injunctions against implementation of the rule.  If an injunction is issued, the rule gets put on hold until a court can determine whether the DOL actually violated the APA in implementing its new rule.  Oral arguments have already been held on whether the injunction should be issued.

For those who remember, the previous presidential administration set the weekly salary threshold for the white collar exemption at $684, and when that was challenged under the same grounds, the plaintiff lost at district court, but has appealed that decision to the Fifth Circuit Court of Appeals.  However, that case is not set to be heard until August.

We’ll keep our eyes peeled for any decisions on the three lawsuits.  If the injunction is issued, there is no legal requirement to abide by the rule yet.  If you, or your organization need assistance in complying with new wage regulations, contact Wiley Reber Law, for legal advice that works.