U.S Department of Labor News: Federal Judge Vacates Overtime Rule
On November 15, a federal judge in the Eastern District of Texas invalidated the Biden administration’s Fair Labor Standards Act (FLSA) overtime final rule. The ruling eliminates the planned salary threshold increases and triennial automatic updates. Employers nationwide should adhere to the 2019 threshold of $684 per week ($35,568 annually). This ruling reflects the court’s concern about the balance between salary thresholds and the duties test, as well as the broader impact on workforce classifications. Rice University will continue to monitor updates and ensure compliance with applicable labor laws.
The Fair Labor Standards Act (FLSA) is a federal regulation that:
- Establishes the criteria for a job to be exempt or nonexempt
- Establishes the federal minimum wage required for all nonexempt jobs
- Guarantees overtime for nonexempt jobs for hours worked over 40 in one workweek (at Rice the workweek begins Sunday at 12:00 am and ends the following Saturday at 11:59 pm)
- Governs the employment of minors
Additional information:
- Wages and the Fair Labor Standards Act
- WHD Fact Sheet #17G: Salary Basis Requirement and the Part 541 Exemptions Under the Fair Labor Standards Act (FLSA)