{"id":6966,"date":"2024-09-12T12:54:00","date_gmt":"2024-09-12T12:54:00","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&p=6966"},"modified":"2026-06-24T08:38:31","modified_gmt":"2026-06-24T13:38:31","slug":"2024-overtime-rule-ruling","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employment-law-updates\/2024-overtime-rule-ruling\/","title":{"rendered":"New ruling may help 2024 overtime rule survive legal challenges"},"content":{"rendered":"\n
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Written by: <\/p>\n\n\n

Michael Cardman<\/a><\/div><\/div>\n\n\n\n
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Share<\/p>\n\n\n

<\/a><\/a><\/a><\/a><\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

The U.S. Department of Labor (DOL) has the authority to set a minimum salary level for Fair Labor Standards Act (FLSA) overtime exemptions, the 5th Circuit Court of Appeals has ruled.<\/p>\n\n\n\n

While the 5th Circuit’s ruling yesterday in Mayfield v US Department of Labor<\/em><\/a> involved a challenge to the Trump administration’s 2020 overtime rule (which raised the minimum salary for most FLSA overtime exemptions to $35,568 per year), it will likely help the Biden administration’s 2024 overtime rule<\/a> (which raised the minimum salary to $43,888 on July 1 and will raise it again to $58,656 on January 1, 2025) to survive the legal challenges before it.<\/p>\n\n\n\n

At least three lawsuits have been filed seeking to overturn the 2024 overtime rule, one by the state of Texas<\/a>, one by a coalition of business interests<\/a> and another by a software development and marketing firm<\/a>. All three of them questioned whether the DOL has the authority to set any minimum salary level, let alone to raise it as high as $58,656. All three also cited the Mayfield case, which was ongoing at the time they were filed.<\/p>\n\n\n\n

Although the 5th Circuit \u2014 whose rulings set binding precedent over the district courts where the lawsuits were filed \u2014 has upheld the DOL’s authority to set a minimum salary level, the 2024 rule still could be overturned on other grounds. Even if precedent requires the lower courts to uphold the DOL’s general statutory authority to add a minimum salary requirement, a district court still could overturn the 2024 rule’s specific minimum salary levels because they are so high that the exemptions’ duties tests<\/a> become irrelevant or because they are “arbitrary and capricious.”<\/p>\n\n\n\n

The DOL’s power to set salary levels “is not unbounded,” the 5th Circuit noted.<\/p>\n\n\n\n

The Mayfield plaintiffs may ask the 5th Circuit to rehear their case and\/or appeal to the Supreme Court. In the meantime, employers<\/a> have more reason to prepare for the January 1 salary increase.<\/p>\n<\/div>\n\n\n\n

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<\/a><\/a><\/a><\/a><\/div><\/div>\n<\/div>\n\n\n\n
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\"Michael<\/div><\/div>\n\n\n\n
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Written by: <\/p>\n\n\n

Michael Cardman<\/a><\/div><\/div>\n<\/div>\n\n\n\n
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The 5th Circuit’s ruling yesterday in Mayfield v US Department of Labor will likely help the 2024 overtime rule survive the lawsuits challenging it.<\/p>\n","protected":false},"author":49,"featured_media":8203,"comment_status":"closed","ping_status":"closed","template":"resource-author","categories":[55],"tags":[],"topic":[63],"class_list":["post-6966","resources","type-resources","status-publish","has-post-thumbnail","hentry","category-hr-news","topic-employment-law-updates"],"yoast_head":"\nNew ruling to help 2024 overtime rule survive legal challenges | Brightmine<\/title>\n<meta name=\"description\" content=\"The 5th Circuit's ruling yesterday will likely help the 2024 overtime rule survive the lawsuits challenging it.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employment-law-updates\/2024-overtime-rule-ruling\/\" 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