The Department of Labor's rule that broadened the number of salaried workers eligible for overtime has been blocked by a Texas federal judge, returning the salary threshold for guaranteed overtime pay to $35,568.
Judge Sean Jordan of the U.S. District Court for the Eastern District of Texas said the Department of Labor exceeded its authority with the rule because it too heavily relied on salary to determine if an employee should be exempt from overtime and didn't take into consideration the kind of work the employee does.
The rule had increased the exemption threshold for guaranteed overtime pay in July, upping it from $35,568 to $43,888. Another increase to $58,656 was scheduled to go into effect on Jan. 1.
ASTA called the judge's decision a "significant legal victory." ASTA was opposed to the rule because of its potential to increase labor costs on travel agencies, most of which are small businesses.
ASTA said that the Biden administration is unlikely to appeal the decision to the Fifth Circuit Court because the incoming Trump administration won't be inclined to defend the rule in court.
In 2016, the Obama administration enacted a similar rule that increased the overtime threshold. It met the same fate as the Biden overtime rule -- struck down by a district court judge in Texas and ultimately passed over by the incoming Trump administration.