WASHINGTON, D.C. (Nov. 15, 2024) – Today’s decision by the U.S. District Court for the Eastern District of Texas in the case Plano Chamber of Commerce, et al v. DOL is a tremendous win for small businesses. The lawsuit challenged the Department of Labor’s (DOL) overtime rule increasing the minimum salary threshold for exempt employees under the Fair Labor Standards Act’s (FLSA) executive, administrative, or professional exemption (EAP exemption). The Court determined that the rule, which went into effect in July of this year, exceeded the DOL’s statutory authority and should be vacated.

“On behalf of the thousands of small businesses who have been adversely impacted by the 2024 overtime rule, NFIB is grateful to the Court for putting an end to this onerous regulation,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “This rule overcomplicated the process for determining EAP exemptions, and exponentially increased labor costs for thousands of small businesses. Today’s decision will provide substantial relief for Main Street firms.”

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

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.