NSBA continues to track overtime rule rulings and updates from the Dept. of Labor.
On Nov. 15, the U.S. District Court for the Eastern District of Texas struck down the Biden Department of Labor’s (DOL) overtime rule, citing an overextension of DOL authority. The decision to block the rule comes weeks before the next implementation date.
Issued earlier this year, the rule adjusted the test used to determine whether a worker should be subject to an exemption to overtime pay requirements, updating the salary portion of the test so that workers making less than $58,656 a year would be automatically eligible for overtime pay any time they worked more than 40 hours a week. The rule would also update the salary threshold every three years.
As such, the current effective overtime rule standard is that set by the first Trump administration, whereby salaried workers earning less than $35,568 would automatically be owed overtime pay. The Trump-era DOL overtime rule was upheld by a federal court earlier this year.
