Overtime Rule Strike Down Brings Relief for Small Business [Video]

Small-business owners are expressing relief after a federal judge in Texas struck down a Biden administration rule that would have significantly expanded overtime pay eligibility for salaried workers.

On November 15, the Texas court’s decision blocked the rule, which sought to increase the salary threshold for overtime eligibility to $58,656 starting January 1, up from $43,888 as of July 1.

With the ruling, the threshold reverts to the $35,568 level set in 2019 under the Trump administration.

The judge argued that employee wages cannot outweigh job duties when determining overtime eligibility. For many small-business owners, the decision alleviates financial pressures.

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