Colleges and universities warned that the Biden administration's overtime expansion, finalized in spring 2023, could lead to tuition increases or layoffs, indicating it was 'highly disruptive'.
The federal judge's ruling resets the overtime threshold to $35,568, reversing a planned increase that would have made about four million salaried workers eligible for overtime pay.
Biden's Department of Labor argued that the overtime expansion was vital to ensure that the lowest-earning workers were properly compensated for their time.
This legal decision is a significant setback for the Biden administration, which faces hurdles with other initiatives like student loan reform and antidiscrimination protections for transgender students.
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