Update on Overtime Rule Court Challenges
May 02, 2025
On April 29, the US Court of Appeals for the 5th Circuit stayed the litigation challenging the Biden-era overtime rule, Texas and Plano Chamber of Commerce v DOL, for 120 days.
As a reminder, the final rule was published in April 2024 and included a two-step phase-in for increasing overtime pay. You can read our initial analysis on the blog. ÂÜÀòÍøhad signed a letter (with more than 80 other national groups) asking the Biden administration to delay implementation of the rule. The first phase-in of the overtime increase DID go into effect on July 1 2024, but a subsequent court decision out of the U.S. District Court for the Eastern District of Texas invalidated the entirety of DOL’s overtime final rule and reset salary levels. Under the Trump administration, Department of Labor had requested the case be held in abeyance while the agency reconsiders the rule. DOL will provide a status update every 60 days. Read the court’s stay.