DOL Overtime Rule Rescission: Relief for Employers

Last Friday, the U.S. District Court for the Eastern District of Texas struck down the U.S. Department of Labor’s 2024 Overtime Rule. The rule would have increased the salary threshold for overtime eligibility to $58,656 annually. With this ruling, the threshold will remain at $35,568, significantly reducing potential payroll burdens. This outcome reflects the collaborative efforts of industry advocates, including the American Hotel & Lodging Association and the Restaurant Law Center, in challenging this rule. The rescission of the overtime rule will alleviate significant cost pressures, allowing operators to focus on growth.