Skip to content

Small Business Lawsuit Stops Onerous Overtime Threshold Rule

US District Court Strikes Down DOL Overtime Rule

WASHINGTON, DC (November 15, 2024) – Today’s decision by the United States District Court for the Eastern District of Texas in the case Plano Chamber of Commerce, et al v. DOL It’s a tremendous victory for small businesses. He lawsuit questioned the decision of the Department of Labor (DOL) overtime rule increase the minimum wage threshold for employees exempt under the executive, administrative, or professional exemption (EAP exemption) of the Fair Labor Standards Act (FLSA). The Court determined that the rule, which went into effect in July of this year, exceeded the DOL’s legal authority and should be vacated.

“On behalf of the thousands of small businesses that have been negatively impacted by the 2024 overtime rule, the NFIB thanks the Court for ending this onerous regulation,” he said. Beth Milito, Executive Director of the NFIB Small Business Legal Center. “This rule overcomplicated the process for determining EAP waivers and exponentially increased labor costs for thousands of small businesses. “Today’s decision will provide substantial relief to Main Street businesses.”

The NFIB lawsuit argued that the DOL’s overtime rule exceeds the DOL’s legal authority under the FLSA and the Administrative Procedure Law (APA). NFIB joined numerous other organizations in filing the lawsuit.

NFIB’s Small Business Law Center protects the rights of small business owners in the nation’s courts. NFIB is currently actively involved in more than 40 cases in federal and state courts across the country and the United States Supreme Court.