A federal judge in Texas blocked the Biden administration's new overtime pay rule, siding with Texas and business groups arguing the Labor Department exceeded its authority.
The now-blocked rule would have increased the salary threshold for overtime eligibility significantly, from $35,568 to $58,656, potentially impacting millions of workers.
Previously, nearly all hourly workers are entitled to overtime after 40 hours, but many salaried workers are exempt unless they earn below a certain cap.
The Labor Department estimated an additional 4 million lower-paid salaried workers would have become eligible for overtime under the new rule, highlighting its far-reaching impact.
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