Federal Judge Strikes Down Biden Administration Overtime Rule
A federal judge in Texas has blocked a key Biden administration regulation that sought to expand overtime pay protections to millions of American workers.
On Friday, Judge Sean D. Jordan of the U.S. District Court for the Eastern District of Texas ruled that the Department of Labor overstepped its authority when issuing the new rule earlier this year.
The decision granted summary judgment to the state of Texas, which had challenged the regulation, halting its implementation nationwide and leaving the current overtime rules unchanged.
The Overtime Rule in Question
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The Biden administration’s proposed rule aimed to raise the salary threshold for overtime eligibility, significantly increasing the number of salaried workers entitled to time-and-a-half pay when working more than 40 hours per week.
Currently, salaried workers earning below $35,568 annually are automatically eligible for overtime pay—a threshold set during former President Donald Trump’s administration.
Biden’s rule would have raised this limit to $58,656 in 2024, potentially benefiting an estimated 4 million additional workers. It also included a provision to adjust the threshold with inflation over time.
Opposition from Employers
Business groups, including the Associated Builders and Contractors (ABC), strongly opposed the rule, arguing it would impose significant costs on employers and reduce workplace flexibility.
Ben Brubeck, ABC’s vice president for regulatory and labor affairs, praised the judge’s decision, stating the rule could have harmed small businesses, disrupted industries like construction, and limited career growth opportunities for employees on salary.
Court Challenges and Political Implications
Judge Jordan, a Trump appointee, had previously issued a temporary injunction against the rule in Texas earlier this year. His latest ruling extends the block nationwide. The Biden administration now faces the choice of appealing the decision, though the regulation’s fate ultimately depends on how the incoming Trump administration, if confirmed, chooses to handle it.
During Trump’s first term, his administration set a much lower overtime threshold than the Obama administration had sought. A Trump campaign spokesperson has not clarified the former president’s position on Biden’s more expansive proposal.
Next Steps
The Labor Department has not yet commented on the court’s ruling or its plans to defend the regulation. If the administration chooses to appeal, the case could continue through higher courts, keeping the future of overtime reform in question.
For now, workers and employers alike will operate under the existing rules, leaving Biden’s broader economic reform ambitions in limbo.
