Alexandria, VA (November 20, 2024) — The Air Conditioning Contractors of America (ACCA) is applauding the U.S. District Court for the Eastern District of Texas for its ruling to invalidate the Department of Labor's (DOL) 2024 overtime rule.
This decision preserves much-needed flexibility for small businesses like contractors while ensuring labor policies remain focused on job duties rather than salary thresholds.
The DOL’s decision, issued on November 15, means the salary threshold changes that went into effect on July 1, 2024, are now void. Additionally, the planned increases for January 1, 2025 won’t happen either.
"The court’s ruling is a win for contractors and small business owners nationwide," said Barton James, ACCA president and CEO. "By rejecting the one-size-fits-all approach of the overtime rule, this decision protects the ability of HVACR businesses to fairly classify employees based on their professional roles, not just their paychecks. We stand committed to supporting labor policies that balance fair wages with operational flexibility."
The court found the DOL’s rule to be overly rigid, emphasizing salary over job responsibilities and violating administrative procedures with its automatic updates.
A key part of ACCA’s core mission is to track regulations and policies that are likely to impact contractor businesses, and to help inform contractors about how they can respond to changing regulations. The association has been actively involved in opposing the overtime rule since it was first proposed.
With the salary threshold reverting to $35,568 for overtime exemptions, ACCA urges contractors to stay informed and engaged as potential appeals or new rulemaking may emerge. The association will continue to monitor the situation, providing updates to help HVACR businesses navigate the changing landscape of labor regulations.
For more information about ACCA and its advocacy initiatives, please visit acca.org.