Small business saw a tremendous victory on Nov. 15 in a decision by the U.S. District Court for the Eastern District of Texas to stop an overtime threshold rule. NFIB filed a lawsuit challenging the Department of Labor’s (DOL) overtime rule that increases the minimum salary threshold for exempt employees. NFIB joined with numerous other organizations in filing the lawsuit.

Considering this decision, the minimum salary threshold is again set to $35,568, and the threshold for highly compensated employees is back to $107,432. The Court determined that the rule, which went into effect in July of this year, exceeded the DOL’s statutory authority, striking down each part of the rule to vacate it nationwide.

“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. 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,” said Beth Milito, Executive Director of the NFIB Small Business Legal Center.

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 the U.S. Supreme Court.