Trump Administration Withdraws Appeal of Biden-Era Overtime Rule, Delivering Relief to Energy Marketers

Trump Administration Withdraws Appeal of Biden-Era Overtime Rule, Delivering Relief to Energy Marketers

In a swift and decisive move welcomed by business advocates, the U.S. Department of Labor (DOL) under the Trump administration has formally withdrawn its appeal of the Biden-era 2024 overtime rule. The action, taken via a joint stipulation filed yesterday in Flint Avenue LLC v. DOL before the U.S. Court of Appeals for the Fifth Circuit, ends all litigation over the rule and confirms that the more stringent salary thresholds will never take effect. The Biden-era rule is dead, not enjoined.

The Biden administration’s April 2024 final rule would have dramatically raised the minimum salary level required for executive, administrative, and professional (EAP) employees to qualify for exemption from overtime pay under the Fair Labor Standards Act (FLSA). It set the weekly threshold at $844 ($43,888 annually) effective July 1, 2024, with a further increase to $1,128 ($58,656 annually) scheduled for January 1, 2025. The highly compensated employee (HCE) threshold would also have risen. Federal district courts in Texas had already vacated the rule, determining that the DOL exceeded its statutory authority by relying too heavily on salary levels rather than job duties.

With the appeal now withdrawn, the salary thresholds established by the 2019 rule remain firmly in place: $684 per week ($35,568 annually) for standard EAP exemptions and $107,432 in total annual compensation for HCE exemptions. Employers must continue to meet the applicable duties tests for each exemption category.

Why This Matters for EMA Members

Energy Marketers of America represents family-owned and independent businesses that keep America’s fuel supply chain moving—from wholesale distribution and heating oil delivery to propane marketing and convenience store operations. Many of our members employ salaried managers, dispatchers, sales professionals, and administrative staff who routinely work variable and often extended hours to meet customer needs, especially during severe weather events, supply disruptions, or peak demand periods.

The withdrawn rule would have forced many marketers to either raise salaries for exempt employees, reclassify them as non-exempt and pay overtime, or absorb significant new labor costs. In an industry already operating on thin margins amid volatile fuel prices and rising operational expenses, those changes would have been particularly burdensome. By preserving the current, more flexible thresholds, the Trump administration’s action provides immediate regulatory certainty and helps control payroll costs for small and mid-sized energy businesses nationwide.

This outcome aligns with EMA’s long-standing advocacy for practical, business-friendly labor policies that recognize the unique demands of energy marketing and distribution. We will continue to monitor any future DOL rulemaking on overtime exemptions and stand ready to provide member input.

Next Steps for Members

While the Biden-era expansion is now permanently off the table, employers should:

• Review current employee classifications to ensure they satisfy both the salary and duties tests under the 2019 rule.
• Stay alert for any new DOL proposals that could adjust thresholds in the future.
• Consult with legal counsel or HR professionals regarding compliance with both federal FLSA requirements and any applicable state overtime laws. For example, California, New York, Washington, Colorado, Alaska, and Maine all have state salary thresholds that exceed $35,568, and several index annually. EMA members operating in those states must comply with the higher state floor regardless of federal law.

This development underscores the value of proactive engagement with policymakers to protect the operational flexibility our industry needs to deliver reliable, affordable energy to American consumers and businesses.