Everything’s bigger in Texas, even the impact of the state’s legal challenge to federal overtime rules. On November 15, 2024, the U.S. District Court for the Eastern District of Texas struck down the U.S. Department of Labor’s (DOL’s) Final Rule on Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees (the “Overtime Rule”). CAPLAW detailed changes resulting from the Overtime Rule and recent history surrounding it in a May 2024 article. As a result of the Texas ruling, the federal rules related to exemption from the overtime requirements of the Fair Labor Standards Act (FLSA) revert to those in effect prior to July 1, 2024, including the salary level for the executive, administrative, and professional (EAP) employee exemption test, which reverts to $684/ week.
Independent Contractor Classification Under the FLSA: An Ever-Evolving Concept
Familiar changes are likely coming to worker classification rules under federal wage and hour laws. With these changes, CAAs may find that more workers may be treated under the Fair Labor Standards Act as independent contractors instead of employees. However, CAAs are...
