Court Overturns Biden Overtime Pay Rule

A Texas federal court has struck down the Biden administration's new overtime exemption rule, which sought to raise the salary threshold for executive, administrative, and professional (EAP) employees from $35,568 to $43,888 in July 2024 and to $58,656 by January 2025. The court ruled that the Department of Labor (DOL) exceeded its statutory authority by prioritizing salary over job duties, effectively creating a 'salary-only' test for EAP exemptions under the Fair Labor Standards Act (FLSA). Judge Sean Jordan's decision vacated the rule nationwide, reverting the salary threshold back to its 2019 level. This ruling impacts millions of salaried workers and echoes similar legal challenges faced by previous administrations in attempts to adjust overtime regulations. The DOL had justified the changes as necessary updates to address wage stagnation, but the court's decision reflects ongoing debates regarding labor regulations and the limits of executive authority. This outcome signals a potential shift back to lower salary thresholds for overtime exemptions as the political landscape evolves.