Texas Border Business
Washington, D.C. – The U.S. District Court in the Eastern District of Texas overturned the U.S. Department of Labor (DOL) 2024 changes to the Overtime regulations, handing a win to a coalition of business groups – co-led by the Restaurant Law Center and the Texas Restaurant Association. The rule would have significantly increased the overtime threshold to include all employees making up to $58,656 annually, and then triggered automatic increases in the future.
National Restaurant Association President & CEO Michelle Korsmo issued the following statement about the ruling:
“Today’s decision is a win for restaurant operators and their business viability. During the past five years, the average operator’s labor costs have gone up more than 30 percent. The challenge to recruit talented managers is already pushing salaries higher, ensuring that good employees are making more through increases happening in the marketplace, in a more manageable manner for operators.
“We’re pleased the court agreed with our concerns about how the DOL’s one-size-fits all rule was an unlawful exercise of the agency’s power that would have significantly driven up costs for business owners and consumers.”
Read more of the Restaurant Law Center’s arguments against the changes to the Overtime regulations here.
