Federal Judge Overturns Biden's Overtime Pay Rule
The ruling halts a major labor regulation intended to extend overtime pay to millions of workers.
- A Texas federal judge permanently blocked a Biden administration rule aimed at expanding overtime pay eligibility to about 4 million salaried U.S. workers.
- The rule, which took effect in July, would have required overtime pay for salaried workers earning less than $58,600 annually, starting January 2025.
- The decision reverts the salary threshold for overtime eligibility back to $35,500, as established in 2019 under the Trump administration.
- Judge Sean Jordan ruled the Department of Labor exceeded its authority by basing overtime eligibility solely on salary rather than job duties.
- The Labor Department may appeal the decision, but the incoming Trump administration might choose not to pursue further action.