Texas judge ends Biden overtime rule, benefiting 4 million American workers

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A federal judge in Texas has entirely eliminated a rule from President Joe Biden's administration that expanded overtime protections for workers by requiring employers to pay overtime premiums to more employees, reports said. several media outlets, eliminating one of the most high-profile Labor Department rules adopted during Biden's term. administration.

The United States Department of Labor building on March 26, 2020, in Washington, DC.

AFP via Getty Images Key Facts

Judge Sean D. Jordan of the U.S. District Court for the Eastern District of Texas, appointed by President-elect Donald Trump during his first term, said the Labor Department exceeded its authority in implementing the rule .

The rule would have the potential to make about 4 million additional workers eligible for overtime pay, the Labor Department said.

The first phase of the rule took effect July 1 and increased the salary threshold to qualify for overtime from about $35,000 to almost $44,000, and the next increase, which would have taken effect on next year, would have brought it to almost $59,000.

The law also provides that from July 1, 2027, the minimum overtime threshold will increase every three years.

Reuters reported that the overtime eligibility threshold would now return to $35,500, the level set in 2019 under Trump.

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Crucial quote

The 2024 Rule will impact millions of employees across all sectors of the economy, as well as state and local governments, and impose billions in costs on employers. And given the number and variety of members of professional organizations who are eligible for relief, it would be impractical, if not impossible, to craft party-tailored relief here, Jordan wrote in the ruling stating that overall of the rule was canceled.

Key context

The rule was one of Biden's most notable labor efforts during his term, although it faced legal challenges in federal courts in Texas and the District of Columbia, according to Bloomberg. Texas' argument that Jordan ruled in favor of Friday was made by the state of Texas and the companies, arguing that the rule harms them by requiring them to pay overtime to new, non-exempt employees or to limit the working hours of these employees, thereby forfeiting their services. Biden had made raising the overtime eligibility threshold one of his projects when he was vice president under President Barack Obama, announcing in 2016 that the administration intended to increase it by approximately $23,000 to almost $47,500. This ran into legal difficulties, however, and the threshold remained at $23,000 until Trump raised it in 2019. At the time this rule was adopted, Acting Labor Secretary Julie Su said in a press release that it would restore the promise to workers that if you work more than 40 hours a week, you should be paid more for that time.

To watch

If the Ministry of Labor appeals. Reuters reported that the department may attempt to reinstate the rule, but that the Trump administration may choose not to. Trump has not yet named who he will appoint to lead the Department of Labor.

Further readingBloomberglawTexas judge rejects Biden's overtime expansion for millions (1) Forbes3 million more U.S. workers could qualify for overtime under Biden proposalBy Molly BohannonReutersU.S. judge strikes down overtime pay rule by Biden

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