Second Texas Judge Strikes Down Biden’s Overtime Pay Rule

A federal judge in Texas has blocked a new regulation from the Biden administration that would have pushed back the eligibility for overtime to around four million paid employees. Lubbock had U.S. District Judge Sam Cummings who supported another decision by Judge Sean Jordan in Lubbock who had stopped the rule in November the same when it was initiated.

The DO would have mandated that employers pay overtime to workers who are paid on a salary basis and earn less than $ 56,600 per year for any work performed beyond 40 hours per week starting January 2025. They temporarily increased the limit to $44,000 starting July 1, under the rule but after these verdicts, the previous 2019 limit stands at $35,500. The judges found that the department acted unreasonably by using wages instead of work performed in deciding who was qualified for overtime pay.

The legal case, filed by marketing firm Flint Avenue, which supports the case in the current appeal, helps to reaffirm the original decision. The Justice Department has not reacted to the ruling while Sheng Li who represented Flint Avenue said that the court had stopped what he referred to as an unlawful endeavor to preempt the congress on the setting of minimum wage rates.

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