On May 5, 2026, the Department of Labor filed a joint stipulation in Flint Avenue, LLC v. U.S. Department of Labor before the 5th U.S. Circuit Court of Appeals, formally ending its legal defense of the Biden administration’s overtime final rule.
Background
The Biden administration’s overtime final rule implemented a phase-in approach to increasing the minimum salary threshold under the Fair Labor Standards Act overtime regulations. The rule raised the minimum salary threshold from $684 per week ($35,568 per year) to $844 per week ($43,888 per year), effective July 1, 2024, and was set to increase again to $1,128 per week ($58,656 per year) on January 1, 2025. The rule also included automatic updates to the salary threshold every three years.
The Biden rule faced significant legal challenges shortly after its publication. In November 2024, a federal judge in the Eastern District of Texas vacated the rule in State of Texas v. U.S. Department of Labor, and in December 2024, a federal judge in the Northern District of Texas similarly vacated the rule in the Flint Avenue case. Both rulings struck down all components of the rule, including both salary threshold increases and the automatic update mechanism.
DOL’s Appeals and Dismissal
Following the district court rulings, the Biden administration’s DOL filed an appeal in the State of Texas case to the 5th Circuit. As CUPA-HR reported in March 2025, the Trump administration’s DOL had also filed a second appeal in the Flint Avenue case on February 28 — an action that likely intended to serve as a placeholder while the Trump administration determined how to proceed with the Biden-era rulemaking and related litigation.
In the weeks that followed, the Flint Avenue appeal was stayed while the DOL reconsidered its policy position. That reconsideration has now concluded with the DOL’s decision to abandon the appeal entirely. The joint stipulation filed with the 5th Circuit puts a formal end to the Flint Avenue litigation.
What This Means for Employers
With the Biden-era overtime rule fully vacated and the DOL no longer defending it in court, the Trump administration’s 2019 overtime final rule remains the governing standard. Under that rule, the minimum salary threshold for overtime exemption under the FLSA is $684 per week ($35,568 per year). Employers should ensure their compensation structures and overtime classifications are aligned with the 2019 rule’s requirements.
The Trump administration’s previous regulatory agenda indicated that the DOL was considering how to proceed with the Biden administration’s overtime regulations, but it remains to be seen whether they will pursue new rulemaking to raise the salary threshold. CUPA-HR will continue to monitor developments related to FLSA overtime regulations and keep members informed of any updates.