AFP Foundation’s Lee A. Steven writes on how two federal courts in Texas have applied Loper to overturn two Department of Labor regulations:
“In Restaurant Law Center v. U.S. Department of Labor (5th Cir. 2024), the Fifth Circuit overruled the lower court, which had upheld as lawful a 2021 Department of Labor rule that restricted when employers may claim a “tip credit” for “tipped employees” under the Fair Labor Standards Act.”
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The second case, Texas v. U.S. Department of Labor, is a district court case from the Eastern District of Texas. In this matter, the State of Texas and several trade associations and employers challenged a Department of Labor rule that raised the minimum salary threshold at which executive, administrative, and professional (EAP) employees are exempt from overtime pay under the Fair Labor Standards Act…the court vacated the rule in its entirety. The Department of Labor appealed the decision and the parties are currently briefing the case before the Fifth Circuit.”
