Texas wins court stay on Biden's overtime rule


This rule made it mandatory for employers to pay overtime pay to employees earning less than $59,000 per year.

AUSTIN, Texas — A federal judge on Friday temporarily blocked the Biden administration's overtime pay rule from taking effect in Texas.

The rule, which takes effect on Monday, will require employers to pay overtime pay to workers earning less than $59,000 annually. The limit will be raised every three years. The current limit is $35,000 annually.

U.S. District Judge Sean Jordan, appointed by Republican former President Donald Trump, says the rule violates states' rights under the Constitution.

Under federal law, employees with “executive, administrative, and professional” (EAP) duties are exempt from receiving overtime pay. Pay is one factor the Department of Labor uses to determine when this applies.

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But Texas argued that the rule should be struck down because it determines overtime exemptions based on salary rather than employee duties. The Labor Department, meanwhile, argued that lower-wage workers often perform the same duties as their hourly co-workers but don't earn overtime for the additional hours.

In his decision, Jordan said any rules implementing the EAP exemption should focus on the duties of workers.

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The overtime rule for Texas state employees has been blocked pending the outcome of a legal challenge by Texas Attorney General Ken Paxton, who has called the rule a “regulatory overreach”.

The US Department of Labor is expected to challenge the decision.

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