The U.S. District Court for the Eastern District of Texas has invalidated the Department of Labor’s (DOL) 2024 overtime rule.

Judge Jordan ruled that DOL overstepped its authority, replacing a focus on “bona fide executive, administrative, or professional” duties with a salary-only test. The court also struck down automatic salary threshold updates as violating proper rulemaking procedures.

Effective immediately, the minimum salary threshold returns to $35,568, with $107,432 for highly compensated employees. While DOL may appeal, the current administration is unlikely to defend the rule and could propose new regulations in the future.