Court Overturns DOL Overtime Rule

What happened: A Texas federal court Nov. 15 struck down the Department of Labor’s (DOL) new overtime rule, which raised the minimum salary threshold needed for employees to be exempt from overtime pay and introduced automatic updates every three years. The court said the rule emphasized salary over job duties and violated regulatory procedural requirements. The thresholds now revert to the 2020 levels, including for highly compensated employees.

Why it matters: The decision means businesses, including those in transportation construction, don’t have to meet the regulation’s higher salary thresholds. ARTBA and coalition partners have been active on this issue, submitting comments and requesting an extension to the compliance deadline. The agency did not act on those requests.

What’s next: DOL may appeal the decision or revisit the regulation under a new administration. ARTBA will monitor developments and provide updates. Check out a summary of the rule. The contact is Prianka Sharma.