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Texas Court Blocks Increased Salary Thresholds for White Collar Exemptions under the FLSA

As you know, the Department of Labor (DOL) revised the regulations issued under the Fair Labor Standards Act (FLSA) implementing the exemptions from minimum wage and overtime pay requirements for executive, administrative, professional, outside sales, and computer employees (i.e., “white collar” employees”). Significant revisions, which go into effect today, July 1, include increasing the standard salary level to qualify for the “white collar” exemptions from overtime and minimum wage, as well increasing the highly compensated employee total annual compensation threshold.

A judge for the U.S. District Court for the Eastern District of Texas, however, has blocked the enforcement of the increased salary levels against the state of Texas. As such, Texas employers should continue using the previous salary levels in classifying employees.