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Federal Judge in Texas Blocks Rule Making 4.2 Million More Salaried Employees Eligible for Overtime Pay

Salaried employees in Texas and throughout the country will have to wait to see if they will become eligible for overtime pay. Recently, a federal judge in Texas issued a relatively last-minute injunction blocking a new rule that would have applied to 4.2 million more salaried employees, making them eligible to receive time-and-a-half pay for overtime hours.

What would the new rule do?

As we discussed in a recent post, the new rule would have increased the base salary wage that made workers eligible for paid overtime. The rule was set to go into effect on Dec. 1, but the federal judge's ruling puts the matter on hold.

Under the old rule, which remains in effect, if your annual salary is under $23,660, you are eligible for overtime pay for every hour worked over 40 in a week. The new rule would increase the base salary to $47,476, allowing 4.2 million more workers to be eligible for overtime pay.

The purpose of the rule change is to help lower-paid employees in managerial positions. Often these employees are not eligible for overtime pay, but they are nonetheless expected to work long hours.

Essentially, millions of workers have been left in limbo, and employers across the country have already begun preparing for or implementing the changes. It is unclear at this point how employers will react to the judge's decision. Will employers take back the promised changes, risking a drop in employee morale? Or will employers choose to uphold the changes, despite no legal requirement to do so?

The U.S. Department of Labor has filed a notice of appeal defending the new rule, but the outcome of those proceedings remains to be seen.

If you have questions or concerns about overtime pay in Texas, whether for salaried pay or hourly pay, contact an experienced employment law attorney to learn more about your rights.

At Sturm Law PLLC, we help workers in Houston and throughout Texas get the unpaid wages they deserve.

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