Texas officials and lawmakers often like to consider themselves and our state independent of federal laws and other regulations. Sometimes, this independent streak applies to federal protections for workers.
Last month, we told you that Texas Attorney General Ken Paxton was suing the federal government over the Pregnant Workers Fairness Act (PWFA), which requires most employers to provide reasonable accommodations to pregnant employees. A federal judge upheld the state’s right not to require Texas employers to comply with that law.
Now, a federal judge in Texas has blocked the state’s implementation of a new federal overtime rule — at least for employees who work for the state. The case pits the State of Texas and some business groups against the U.S. Department of Labor.
What is the new federal overtime rule?
The new federal rule is part of an ongoing effort to prevent employers from being able to deny workers who regularly work long hours overtime pay by making them salaried employees. It used to be that nearly every salaried employee was “exempt” from overtime pay.
The Fair Labor Standards Act (FLSA) has put limits on that. It requires that for someone to be exempt from overtime pay, they must work in a “bona fide executive, administrative, or professional capacity” and earn over a specified salary.
Is it an “unlawful exercise of power?”
The new rule increases the minimum annual salary an employee must earn to be exempt from overtime from $35,568 to nearly $44,000 on July 1 and over $58,000 next January. It’s expected to give an additional $4 million people around the country the right to be paid time-and-a-half if they work overtime.
In his ruling, the judge explained his decision to agree to the injunction as the matter proceeds through the courts by saying, “Texas is likely to succeed in showing that the 2024 Rule is an unlawful exercise of power, Texas will be irreparably harmed absent an injunction, and the balance of equities and the public interest favor preventing unlawful agency action.” The state has argued that implementing the new rule would be too costly, even though it would affect fewer than 100 employees.
While this particular ruling won’t have widespread implications for Texans, other legal maneuvers and rulings, as we noted with the PWFA, can. It can be difficult for employees – and even employers – to keep up with changes in state and federal law (and the challenges to federal law by the state). If you have questions or concerns about your rights, it can help to get experienced legal guidance.