Biden’s overtime rule, aiming to raise the FLSA threshold to $58,656 by 2025, faces legal hurdles. Texas judges blocked the initial increase, and appeals are now paused. The 5th Circuit Court is involved.
The Biden administration’s effort to broaden overtime qualification to countless united state workers would certainly have pressed the yearly minimum threshold under the FLSA to $58,656 in 2025 with automated, additional boosts every three years beginning in July 2027. An initial rise to $43,888 annually took effect prior to Texas government judges obstructed it together with the rule’s various other components.
Overtime Rule Halted by Courts
United State Division of Justice lawyers asked the 5th united state Circuit Court of Appeals to temporarily put on hold the Labor Department’s charms in 2 instances challenging its 2024 Fair Labor Criteria Act overtime guideline, according to an April 24 court filing.
Legal Battles and the 5th Circuit
A view of the John Minor Wisdom United State Court of Appeals Structure, place of the 5th United State Circuit Court of Appeals, in New Orleans, La. The 5th Circuit has appellate territory in two challenges to the Biden-era overtime regulation.
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Texas Court Blocks Overtime Expansion
Texas area court judges twice blocked DOL’s last regulation, which increased the minimum salary threshold for overtime pay eligibility in 2 actions. First, a November 2024 choice agreed complainants including the state of Texas and urged the guideline nationwide. A second judgment reserved and abandoned the rule in response to a claim by advertising firm Flint Avenue.
1 5th Circuit Court2 Biden administration
3 FLSA
4 Labor Department
5 legal challenges loom
6 overtime rule
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