Round-up: Federal Judge Vacates New Overtime Rules

The U.S. Department of Labor’s rules to expand overtime eligibility to some four million workers nationwide was struck down on Friday, Nov. 15, by a federal judge in Texas. U.S. District Court Judge Sean Jordan ruled that “the 2024 Rule exceeds the Department’s authority and is unlawful.”

The ruling vacates the Labor Department’s overtime rule increasing the threshold for overtime from $35,568 to $43,888 effective July 1 and would have raised it again to $58,656 on Jan. 1, 202.

Inside Higher Ed reported that “nearly 59,000 employees across 882 institutions were set to benefit from the second phase,” including:  admissions officers, counselors and advisers, student affairs professionals, and athletics staff, though coaches and faculty would have been exempt.  Colleges and universities have argued that the Biden administration’s overtime expansion, first proposed in September 2023 and finalized this spring, went too far, too fast and would be “highly disruptive.” They also warned that it could lead to tuition increases or layoffs.

Below is a collection of new stories on the ruling:

Federal Judge Strikes Down Biden’s Overtime Expansion
Inside Higher Ed (November 18, 2024)

$35K Overtime Salary Threshold Back in Effect
Higher Ed Dive (November 18, 2024)

Texas Court Strikes Down Federal Overtime Rule (Again)
The National Law Review (November 17, 2024)

US Judge Strikes Down Biden Overtime Pay Rule
Reuters.com (November 15, 2024)

Judge Rejects Biden’s Overtime Rule Benefitting 4 Million U.S. Workers
Forbes.com (November 15, 2024)