Austin, Texas – A federal judge in Texas has temporarily halted a Biden administration overtime pay rule that was set to take effect on Monday. The rule would have required employers to pay salaried workers making less than $59,000 a year overtime pay, with plans to increase this threshold every three years. Currently, the threshold stands at $35,000 a year.
U.S. District Judge Sean Jordan, who was appointed by former President Donald Trump, ruled that the new overtime pay rule violated state rights under the constitution. The rule in question focuses on determining overtime exemptions based on pay rather than workers’ duties. Texas argued against the rule, stating that workers with lower salaries often perform the same duties as their hourly colleagues but are not compensated for overtime hours.
Judge Jordan emphasized that any rule implementing the exemption for “executive, administrative, and professional” duties should prioritize workers’ duties. The decision to block the overtime rule for Texas state workers came as the state’s Attorney General, Ken Paxton, challenged the rule, calling it “regulatory overreach.”
The U.S. Department of Labor is expected to challenge Judge Jordan’s ruling, setting the stage for further legal proceedings on the matter. Despite the setback in Texas, the Biden administration remains committed to expanding overtime pay eligibility for workers nationwide.
This legal battle highlights the ongoing debate over fair labor practices and how best to compensate employees for their work. As the issue unfolds in the courts, it sheds light on the complexities of labor laws and the need for clarity in determining who qualifies for overtime pay.
With conflicting arguments from different stakeholders, the future of the overtime pay rule remains uncertain. The outcome of this case could have far-reaching implications for workers across Texas and potentially set a precedent for how similar issues are addressed in other states. As the legal challenge continues, both proponents and opponents of the rule will closely monitor developments in this significant labor dispute.