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Overtime Salary Ruling Shows Effects of Loper Bright in Action

CATEGORY: Authored Articles
CLIENT TYPE: Public Employers
PUBLICATION: Bloomberg Law
DATE: Jan 29, 2025

Recently published in Bloomberg Law, LCW Partner Lisa Charbonneau examines the implications of a Texas federal court’s decision to block the Department of Labor’s 2024 overtime rule, reverting salary thresholds for exempt status under the Fair Labor Standards Act (FLSA) to 2019 levels. Charbonneau explains how this decision benefits employers by reducing labor costs while reminding them of the ongoing requirement to meet duties-based exemption tests.

The article highlights how employers must continue applying rigorous case-by-case evaluations to qualify employees as exempt under the executive, administrative, professional, or highly compensated employee (HCE) categories. Charbonneau also explores the broader legal landscape, noting the increased judicial scrutiny of agency regulations following the Supreme Court’s overturning of the Chevron doctrine.

While the DOL’s appeal is unlikely to succeed, Charbonneau advises employers to remain cautious and compliant with existing federal regulations, as legal challenges create uncertainty. The court’s decision offers financial relief for some employers but reinforces the importance of understanding and meeting FLSA requirements.

To access the full article, please click the following link: https://news.bloomberglaw.com/daily-labor-report/overtime-salary-ruling-shows-effects-of-loper-bright-in-action

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