Texas Judge Blocks Biden Overtime Rule, Reverting Pay Criteria

A federal judge in Texas has blocked a Biden administration rule aimed at extending overtime pay to more U.S. workers. The decision reverts the criteria to include job duties rather than salary alone. The blocked rule would have required overtime pay for workers earning less than $58,600 annually.

A Texas federal judge has permanently blocked a Biden administration rule designed to expand overtime pay eligibility to approximately 4 million more salaried U.S. workers. This decision came after Judge Sean Jordan concluded the rule improperly based overtime eligibility solely on salary amounts rather than job duties.

The state of Texas, backed by various business groups from multiple industries, had filed consolidated lawsuits against the rule. In June, Judge Jordan suggested the rule's invalidity, temporarily enjoined its application to Texas state employees, and has now formally struck it down. The rule, which began on July 1, 2025, would have mandated employers to pay overtime to workers earning under $58,600 per year who work beyond 40 hours weekly.

While the Labor Department can appeal the decision to the 5th U.S. Circuit Court of Appeals, the most traditionally conservative federal appeals court, it's uncertain if the new administration will pursue such a reinstatement. Federal exemptions exist for workers in 'executive, administrative, and professional' roles from overtime, predicated on historical salary thresholds.

(With inputs from agencies.)