On November 15, a federal judge in struck down the U.S. Department of Labor’s new overtime rule that would have expanded overtime pay eligibility to as many as four million workers nationwide. Judge Sean D. Jordan of the U.S. District Court for the Eastern District of Texas, found that the U.S. Department of Labor (DOL) overstepped its statutory authority with the new rule, which raised the minimum salary threshold for overtime exemption under the Fair Labor Standards Act (FLSA).
Under the changes, workers earning less than $58,656 annually would have automatically qualified for overtime pay if they worked more than 40 hours per week. The judge’s ruling vacates the new DOL rule, and the threshold will return to its prior level of $35,568. The Biden administration may appeal this latest decision, though their plans remain unclear at the present time. For more information on the decision, please click here.
For more information or to discuss impacts on your organization, contact Caroline O’Neill.
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