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Department of Labor Seeks to Pause its Litigation over Biden-Era Wage and Hour Overtime Rule: What Employers Need to Know

In a move signaling an expected shift in Federal wage-and-hour policy, the Trump administration has asked the U.S. Court of Appeals for the Fifth Circuit to pause appeals in two cases challenging the U.S. Department of Labor’s (DOL) 2024 overtime rule. The motion—filed unopposed by the Department of Justice (DOJ) on April 24, 2025—indicates that the new DOL leadership is reevaluating the rule, raising doubts about whether the administration will defend or revive the contested regulation.

Background: The 2024 Overtime Rule

The Biden-era DOL’s final rule, issued in April 2024, aimed to significantly increase the salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar exemptions. The rule would have:

  • Raised the minimum salary for the “white collar exemption” for executive, administrative, and professional employees to $1,128 per week (equivalent to $58,656 annually),
  • Increased the “highly compensated employee” (HCE) exemption threshold to $151,164 annually, and
  • Instituted automatic updates to those thresholds every three years.

However, the rule faced immediate legal challenges. In November 2024 and again in December 2024, federal courts in the Eastern District of Texas struck down the regulation, holding that it exceeded the DOL’s statutory authority. The Biden administration appealed both rulings to the Fifth Circuit.

Trump DOL Signals Shift

Despite earlier indications that the Trump administration might withdraw from the litigation, the Trump DOL initially filed appeals in February 2025. Now, however, the agency has requested a pause in those proceedings, stating it intends to “reconsider the rule” and arguing that holding the appeals in abeyance would preserve judicial resources.

Legal Context: The 2019 Rule Remains in Effect

With the 2024 rule currently invalidated, the DOL’s 2019 overtime rule remains the governing standard. That rule sets:

  • The white collar exemption threshold at $684 per week ($35,568 annually), and

  • The highly compensated employee exemption threshold at $107,432 annually.

Notably, the 2019 rule has withstood its own legal challenge. In September 2024, the Fifth Circuit upheld the rule, affirming the DOL’s authority to set salary thresholds under its congressionally delegated power to “define and delimit” FLSA exemptions. A petition for Supreme Court review is expected.

Implications for Employers

The Trump administration’s request to pause the appeals likely foreshadows a formal abandonment of the 2024 rule. However, employers should be cautious. The new DOL could enact its own separate regulation, incorporating parts of the Biden-era 2024 rule.

In the meantime, employers should:

  • Ensure continued compliance with the 2019 salary thresholds for EAP and HCE exemptions;

  • Monitor developments at both the federal and state levels, as some states impose higher exemption thresholds;

  • Prepare for potential regulatory changes from the Trump DOL, which may propose a new overtime rule reflecting different policy priorities.

Looking Ahead

The Trump administration’s motions suggest a rollback of Biden-era wage regulations may be underway. Whether a new rule will emerge—and how it will be structured—remains to be seen. For now, employers should remain vigilant and consult legal counsel as the landscape evolves.

Department of Labor Seeks to Pause its Litigation over Biden-Era Wage and Hour Overtime Rule: What Employers Need to Know

In a move signaling an expected shift in Federal wage-and-hour policy, the Trump administration has asked the U.S. Court of Appeals for the Fifth Circuit to pause appeals in two cases challenging the U.S. Department of Labor’s (DOL) 2024 overtime rule. The motion—filed unopposed by the Department of Justice (DOJ) on April 24, 2025—indicates that the new DOL leadership is reevaluating the rule, raising doubts about whether the administration will defend or revive the contested regulation.

Background: The 2024 Overtime Rule

The Biden-era DOL’s final rule, issued in April 2024, aimed to significantly increase the salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar exemptions. The rule would have:

  • Raised the minimum salary for the “white collar exemption” for executive, administrative, and professional employees to $1,128 per week (equivalent to $58,656 annually),
  • Increased the “highly compensated employee” (HCE) exemption threshold to $151,164 annually, and
  • Instituted automatic updates to those thresholds every three years.

However, the rule faced immediate legal challenges. In November 2024 and again in December 2024, federal courts in the Eastern District of Texas struck down the regulation, holding that it exceeded the DOL’s statutory authority. The Biden administration appealed both rulings to the Fifth Circuit.

Trump DOL Signals Shift

Despite earlier indications that the Trump administration might withdraw from the litigation, the Trump DOL initially filed appeals in February 2025. Now, however, the agency has requested a pause in those proceedings, stating it intends to “reconsider the rule” and arguing that holding the appeals in abeyance would preserve judicial resources.

Legal Context: The 2019 Rule Remains in Effect

With the 2024 rule currently invalidated, the DOL’s 2019 overtime rule remains the governing standard. That rule sets:

  • The white collar exemption threshold at $684 per week ($35,568 annually), and

  • The highly compensated employee exemption threshold at $107,432 annually.

Notably, the 2019 rule has withstood its own legal challenge. In September 2024, the Fifth Circuit upheld the rule, affirming the DOL’s authority to set salary thresholds under its congressionally delegated power to “define and delimit” FLSA exemptions. A petition for Supreme Court review is expected.

Implications for Employers

The Trump administration’s request to pause the appeals likely foreshadows a formal abandonment of the 2024 rule. However, employers should be cautious. The new DOL could enact its own separate regulation, incorporating parts of the Biden-era 2024 rule.

In the meantime, employers should:

  • Ensure continued compliance with the 2019 salary thresholds for EAP and HCE exemptions;

  • Monitor developments at both the federal and state levels, as some states impose higher exemption thresholds;

  • Prepare for potential regulatory changes from the Trump DOL, which may propose a new overtime rule reflecting different policy priorities.

Looking Ahead

The Trump administration’s motions suggest a rollback of Biden-era wage regulations may be underway. Whether a new rule will emerge—and how it will be structured—remains to be seen. For now, employers should remain vigilant and consult legal counsel as the landscape evolves.

Department of Labor Seeks to Pause its Litigation over Biden-Era Wage and Hour Overtime Rule: What Employers Need to Know

In a move signaling an expected shift in Federal wage-and-hour policy, the Trump administration has asked the U.S. Court of Appeals for the Fifth Circuit to pause appeals in two cases challenging the U.S. Department of Labor’s (DOL) 2024 overtime rule. The motion—filed unopposed by the Department of Justice (DOJ) on April 24, 2025—indicates that the new DOL leadership is reevaluating the rule, raising doubts about whether the administration will defend or revive the contested regulation.

Background: The 2024 Overtime Rule

The Biden-era DOL’s final rule, issued in April 2024, aimed to significantly increase the salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar exemptions. The rule would have:

  • Raised the minimum salary for the “white collar exemption” for executive, administrative, and professional employees to $1,128 per week (equivalent to $58,656 annually),
  • Increased the “highly compensated employee” (HCE) exemption threshold to $151,164 annually, and
  • Instituted automatic updates to those thresholds every three years.

However, the rule faced immediate legal challenges. In November 2024 and again in December 2024, federal courts in the Eastern District of Texas struck down the regulation, holding that it exceeded the DOL’s statutory authority. The Biden administration appealed both rulings to the Fifth Circuit.

Trump DOL Signals Shift

Despite earlier indications that the Trump administration might withdraw from the litigation, the Trump DOL initially filed appeals in February 2025. Now, however, the agency has requested a pause in those proceedings, stating it intends to “reconsider the rule” and arguing that holding the appeals in abeyance would preserve judicial resources.

Legal Context: The 2019 Rule Remains in Effect

With the 2024 rule currently invalidated, the DOL’s 2019 overtime rule remains the governing standard. That rule sets:

  • The white collar exemption threshold at $684 per week ($35,568 annually), and

  • The highly compensated employee exemption threshold at $107,432 annually.

Notably, the 2019 rule has withstood its own legal challenge. In September 2024, the Fifth Circuit upheld the rule, affirming the DOL’s authority to set salary thresholds under its congressionally delegated power to “define and delimit” FLSA exemptions. A petition for Supreme Court review is expected.

Implications for Employers

The Trump administration’s request to pause the appeals likely foreshadows a formal abandonment of the 2024 rule. However, employers should be cautious. The new DOL could enact its own separate regulation, incorporating parts of the Biden-era 2024 rule.

In the meantime, employers should:

  • Ensure continued compliance with the 2019 salary thresholds for EAP and HCE exemptions;

  • Monitor developments at both the federal and state levels, as some states impose higher exemption thresholds;

  • Prepare for potential regulatory changes from the Trump DOL, which may propose a new overtime rule reflecting different policy priorities.

Looking Ahead

The Trump administration’s motions suggest a rollback of Biden-era wage regulations may be underway. Whether a new rule will emerge—and how it will be structured—remains to be seen. For now, employers should remain vigilant and consult legal counsel as the landscape evolves.

Department of Labor Seeks to Pause its Litigation over Biden-Era Wage and Hour Overtime Rule: What Employers Need to Know

In a move signaling an expected shift in Federal wage-and-hour policy, the Trump administration has asked the U.S. Court of Appeals for the Fifth Circuit to pause appeals in two cases challenging the U.S. Department of Labor’s (DOL) 2024 overtime rule. The motion—filed unopposed by the Department of Justice (DOJ) on April 24, 2025—indicates that the new DOL leadership is reevaluating the rule, raising doubts about whether the administration will defend or revive the contested regulation.

Background: The 2024 Overtime Rule

The Biden-era DOL’s final rule, issued in April 2024, aimed to significantly increase the salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar exemptions. The rule would have:

  • Raised the minimum salary for the “white collar exemption” for executive, administrative, and professional employees to $1,128 per week (equivalent to $58,656 annually),
  • Increased the “highly compensated employee” (HCE) exemption threshold to $151,164 annually, and
  • Instituted automatic updates to those thresholds every three years.

However, the rule faced immediate legal challenges. In November 2024 and again in December 2024, federal courts in the Eastern District of Texas struck down the regulation, holding that it exceeded the DOL’s statutory authority. The Biden administration appealed both rulings to the Fifth Circuit.

Trump DOL Signals Shift

Despite earlier indications that the Trump administration might withdraw from the litigation, the Trump DOL initially filed appeals in February 2025. Now, however, the agency has requested a pause in those proceedings, stating it intends to “reconsider the rule” and arguing that holding the appeals in abeyance would preserve judicial resources.

Legal Context: The 2019 Rule Remains in Effect

With the 2024 rule currently invalidated, the DOL’s 2019 overtime rule remains the governing standard. That rule sets:

  • The white collar exemption threshold at $684 per week ($35,568 annually), and

  • The highly compensated employee exemption threshold at $107,432 annually.

Notably, the 2019 rule has withstood its own legal challenge. In September 2024, the Fifth Circuit upheld the rule, affirming the DOL’s authority to set salary thresholds under its congressionally delegated power to “define and delimit” FLSA exemptions. A petition for Supreme Court review is expected.

Implications for Employers

The Trump administration’s request to pause the appeals likely foreshadows a formal abandonment of the 2024 rule. However, employers should be cautious. The new DOL could enact its own separate regulation, incorporating parts of the Biden-era 2024 rule.

In the meantime, employers should:

  • Ensure continued compliance with the 2019 salary thresholds for EAP and HCE exemptions;

  • Monitor developments at both the federal and state levels, as some states impose higher exemption thresholds;

  • Prepare for potential regulatory changes from the Trump DOL, which may propose a new overtime rule reflecting different policy priorities.

Looking Ahead

The Trump administration’s motions suggest a rollback of Biden-era wage regulations may be underway. Whether a new rule will emerge—and how it will be structured—remains to be seen. For now, employers should remain vigilant and consult legal counsel as the landscape evolves.

Department of Labor Seeks to Pause its Litigation over Biden-Era Wage and Hour Overtime Rule: What Employers Need to Know

In a move signaling an expected shift in Federal wage-and-hour policy, the Trump administration has asked the U.S. Court of Appeals for the Fifth Circuit to pause appeals in two cases challenging the U.S. Department of Labor’s (DOL) 2024 overtime rule. The motion—filed unopposed by the Department of Justice (DOJ) on April 24, 2025—indicates that the new DOL leadership is reevaluating the rule, raising doubts about whether the administration will defend or revive the contested regulation.

Background: The 2024 Overtime Rule

The Biden-era DOL’s final rule, issued in April 2024, aimed to significantly increase the salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar exemptions. The rule would have:

  • Raised the minimum salary for the “white collar exemption” for executive, administrative, and professional employees to $1,128 per week (equivalent to $58,656 annually),
  • Increased the “highly compensated employee” (HCE) exemption threshold to $151,164 annually, and
  • Instituted automatic updates to those thresholds every three years.

However, the rule faced immediate legal challenges. In November 2024 and again in December 2024, federal courts in the Eastern District of Texas struck down the regulation, holding that it exceeded the DOL’s statutory authority. The Biden administration appealed both rulings to the Fifth Circuit.

Trump DOL Signals Shift

Despite earlier indications that the Trump administration might withdraw from the litigation, the Trump DOL initially filed appeals in February 2025. Now, however, the agency has requested a pause in those proceedings, stating it intends to “reconsider the rule” and arguing that holding the appeals in abeyance would preserve judicial resources.

Legal Context: The 2019 Rule Remains in Effect

With the 2024 rule currently invalidated, the DOL’s 2019 overtime rule remains the governing standard. That rule sets:

  • The white collar exemption threshold at $684 per week ($35,568 annually), and

  • The highly compensated employee exemption threshold at $107,432 annually.

Notably, the 2019 rule has withstood its own legal challenge. In September 2024, the Fifth Circuit upheld the rule, affirming the DOL’s authority to set salary thresholds under its congressionally delegated power to “define and delimit” FLSA exemptions. A petition for Supreme Court review is expected.

Implications for Employers

The Trump administration’s request to pause the appeals likely foreshadows a formal abandonment of the 2024 rule. However, employers should be cautious. The new DOL could enact its own separate regulation, incorporating parts of the Biden-era 2024 rule.

In the meantime, employers should:

  • Ensure continued compliance with the 2019 salary thresholds for EAP and HCE exemptions;

  • Monitor developments at both the federal and state levels, as some states impose higher exemption thresholds;

  • Prepare for potential regulatory changes from the Trump DOL, which may propose a new overtime rule reflecting different policy priorities.

Looking Ahead

The Trump administration’s motions suggest a rollback of Biden-era wage regulations may be underway. Whether a new rule will emerge—and how it will be structured—remains to be seen. For now, employers should remain vigilant and consult legal counsel as the landscape evolves.

Department of Labor Seeks to Pause its Litigation over Biden-Era Wage and Hour Overtime Rule: What Employers Need to Know

In a move signaling an expected shift in Federal wage-and-hour policy, the Trump administration has asked the U.S. Court of Appeals for the Fifth Circuit to pause appeals in two cases challenging the U.S. Department of Labor’s (DOL) 2024 overtime rule. The motion—filed unopposed by the Department of Justice (DOJ) on April 24, 2025—indicates that the new DOL leadership is reevaluating the rule, raising doubts about whether the administration will defend or revive the contested regulation.

Background: The 2024 Overtime Rule

The Biden-era DOL’s final rule, issued in April 2024, aimed to significantly increase the salary thresholds for the Fair Labor Standards Act’s (FLSA) white-collar exemptions. The rule would have:

  • Raised the minimum salary for the “white collar exemption” for executive, administrative, and professional employees to $1,128 per week (equivalent to $58,656 annually),
  • Increased the “highly compensated employee” (HCE) exemption threshold to $151,164 annually, and
  • Instituted automatic updates to those thresholds every three years.

However, the rule faced immediate legal challenges. In November 2024 and again in December 2024, federal courts in the Eastern District of Texas struck down the regulation, holding that it exceeded the DOL’s statutory authority. The Biden administration appealed both rulings to the Fifth Circuit.

Trump DOL Signals Shift

Despite earlier indications that the Trump administration might withdraw from the litigation, the Trump DOL initially filed appeals in February 2025. Now, however, the agency has requested a pause in those proceedings, stating it intends to “reconsider the rule” and arguing that holding the appeals in abeyance would preserve judicial resources.

Legal Context: The 2019 Rule Remains in Effect

With the 2024 rule currently invalidated, the DOL’s 2019 overtime rule remains the governing standard. That rule sets:

  • The white collar exemption threshold at $684 per week ($35,568 annually), and

  • The highly compensated employee exemption threshold at $107,432 annually.

Notably, the 2019 rule has withstood its own legal challenge. In September 2024, the Fifth Circuit upheld the rule, affirming the DOL’s authority to set salary thresholds under its congressionally delegated power to “define and delimit” FLSA exemptions. A petition for Supreme Court review is expected.

Implications for Employers

The Trump administration’s request to pause the appeals likely foreshadows a formal abandonment of the 2024 rule. However, employers should be cautious. The new DOL could enact its own separate regulation, incorporating parts of the Biden-era 2024 rule.

In the meantime, employers should:

  • Ensure continued compliance with the 2019 salary thresholds for EAP and HCE exemptions;

  • Monitor developments at both the federal and state levels, as some states impose higher exemption thresholds;

  • Prepare for potential regulatory changes from the Trump DOL, which may propose a new overtime rule reflecting different policy priorities.

Looking Ahead

The Trump administration’s motions suggest a rollback of Biden-era wage regulations may be underway. Whether a new rule will emerge—and how it will be structured—remains to be seen. For now, employers should remain vigilant and consult legal counsel as the landscape evolves.