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What Just Happened: Late last night, Judge Sean Jordan issued a temporary restraining order that only applies to the State of Texas as an employer, meaning the first phase of the DOL Overtime Rule – raising the standard salary threshold for overtime pay to $43,888 annually – will go into effect on Monday, July 1, 2024 for businesses in TX and nationwide.

The Restaurant Law Center (RLC), the Texas Restaurant Association, and a coalition of other organizations, are analyzing additional legal options. More updates will follow.

What restaurants should do now:

  • Review job duties: Ensure employees are correctly classified as exempt or non-exempt based on their job duties. This DOL fact sheet provides guidance on determining exempt status.
  • Review payroll records: Identify salaried exempt employees with wages below the new threshold. For these employees, consider 1) raising their salary above the new limit or 2) changing their status to non-exempt and properly tracking hours to pay overtime when appropriate.
  • Consult counsel: Consult with an employment attorney licensed in your state to determine how best to comply with the rule and all applicable state and local rules.

For more information, check out these resources: DOL: Final Rule on Overtime Protections, DOL: Final Rule Webinar, DOL: Earnings Threshold Chart, DOL: Small Business Compliance Guide, DOL: Final Rule FAQ

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