A federal judge in Texas has issued a permanent injunction against a rule aimed at increasing the minimum salary threshold for overtime pay. The rule, which was set to raise the threshold from $684 per week (equivalent to $35,568 per year) to $844 per week (equivalent to $43,888 per year) by July 1, 2024, will now revert back to the original threshold of $35,568 per year.
Starting January 1, 2025, employers would have been obligated to compensate salaried employees who earned less than $1,128 per week, equivalent to approximately $58,600 per year, with overtime premiums when they exceeded 40 hours of work in a week.
U.S. District Justice Sean Jordan has criticized the U.S. Department of Labor (DOL) rule that came into effect in July, stating that it wrongly determines eligibility for overtime pay based on workers’ wages rather than their job responsibilities. Various business groups and the state of Texas had filed lawsuits against the rule, and these cases were subsequently consolidated.
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