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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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On June 28, the U.S. District Court for the Eastern District of Texas granted Texas’s motion for preliminary injunctive relief in consolidated cases State of Texas v. Dep’t of Labor, et al., USDC EDTX, 4:24-CV-499, and Plano Chamber, et al. v. Su, et al., USDC EDTX, 4:24-c-v-468. The court issued a Texas-only injunction that is applicable only to employees of the state of Texas, staying implementation of the new Department of Labor (DOL) rule we described in a <a href="https://www.thompsonhine.com/insights/dol-issues-final-salary-rule-for-overtime-exemption/" target="_blank" rel="noreferrer noopener">prior alert</a>, which changes the salary thresholds for employees to qualify for the executive, administrative, and professional exemption from overtime requirements. Importantly, this injunction does not apply to private employers in Texas.

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Employers must implement any salary adjustments or employee reclassification plans previously made in preparation for the new rule, which took effect on July 1, 2024, subject to any future court action, which is expected in the coming days and weeks.

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Litigation regarding these issues is pending in multiple jurisdictions. More rulings will be forthcoming, in this and other pending suits, and may not be consistent. On July 1, for example, a judge in Flint Avenue, LLC v. U.S. Department of Labor denied injunctive relief regarding the new rule, stating that the plaintiff had failed to show irreparable harm.

We will continue to monitor developments on these issues.

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This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.

https://admin.thompsonhine.com/wp-content/uploads/2024/07/Labor-Employment-Alert-Texas-Issues-Injunction-Against-DOLs-New-Overtime-Rule.pdf

Texas Issues Injunction Against DOL’s New Overtime Rule

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