A federal judge in Texas has blocked a new rule from the Biden administration that would have expanded access to overtime pay to millions more salaried workers across the U.S.

Summary

A federal judge in Texas blocked a Biden administration rule that would have expanded overtime pay to millions of salaried workers.

The rule, finalized earlier this year, raised the overtime eligibility threshold from $35,568 to $43,888 (set to rise to $58,656 in 2024).

Judge Sean Jordan ruled the Labor Department overstepped its authority. Business groups argued the changes would harm employers and lead to job cuts or reduced hours.

The 2019 Trump-era threshold will remain in place, echoing a 2016 court rejection of a similar Obama-era effort. Appeals are uncertain.