Client Alert: Texas Federal Judge Invalidates New DOL Overtime Rule

On August 31, U.S. Federal District Judge Amos Mazzant rejected the Obama administration’s 2016 rule raising the minimum salary threshold required to qualify for the Fair Labor Standards Act’s (FLSA) “white collar” exemptions, relying upon the U.S. Supreme Court’s 1984 Chevron USA Inc. v. Natural Resources Defense Council Inc. ruling, which held that if statutory language is unambiguous regarding an issue, the relevant government agency must follow that language. The case is State of Nevada et al. v. U.S. Department of Labor et al., case number 4:16-cv-00731, in the U.S. District Court for the Eastern District of Texas.