Overtime Rule Blocked for State of Texas Ahead of July 1 Launch
When was the new overtime rule originally set to take effect?
The new overtime rule was originally set to take effect on July 1, 2024. However, a Texas federal judge temporarily halted its implementation for the state of Texas, granting an injunction requested by the state.
What did the Texas federal judge temporarily halt?
The Texas federal judge temporarily halted the implementation of the US Labor Department's new overtime rule for the state of Texas, which was set to go into effect on July 1. The decision is a partial blow to the Department of Labor, as the rule was aimed at ensuring the lowest earning workers were being paid fairly for their time and was expected to expand time-and-a-half pay protections to 4 million workers who were previously ineligible6.
What reasons did Texas provide for requesting the injunction?
Texas requested the injunction, arguing that the new overtime rule would drive up payroll costs, destroy its budget, result in fewer jobs for state employees, and lead to cuts in other state services. The state estimated that less than 100 employees would be impacted by the July 1 raise.