Texas Judge Blocks Biden's Overtime Pay Rule Expansion

A federal judge in Texas has halted the Biden administration’s attempt to expand overtime pay eligibility to millions more salaried workers. The court sided with Texas and business groups, arguing the Labor Department exceeded its authority. The decision maintains the current overtime pay threshold set during the Trump administration.

A federal judge in Texas has blocked a new rule from the Biden administration intended to expand overtime pay to millions more salaried employees across the nation.

The decision, handed down by US District Judge Sean Jordan, favored the state of Texas and various business groups. They argued that the Labor Department overstepped its bounds by finalizing a rule earlier this year, which significantly expanded overtime pay for salaried workers.

Judge Jordan ruled that the department should not prioritize employee wages over their job duties while determining eligibility. This new ruling reinstates the $35,568 cap established by the Trump administration in 2019, as opposed to the proposed increase to $43,888, with further hikes planned for next year.

(With inputs from agencies.)