U.S. Department of Justice attorneys asked the 5th U.S. Circuit Court of Appeals to temporarily suspend the Labor Department’s appeals in two cases challenging its 2024 Fair Labor Standards Act overtime rule, according to an April 24 court filing.
Texas district court judges twice blocked DOL’s final rule, which increased the minimum salary threshold for overtime pay eligibility in two steps. First, a November 2024 decision sided with plaintiffs including the state of Texas and enjoined the rule nationwide. A second judgment set aside and vacated the rule in response to a lawsuit by marketing agency Flint Avenue.
The government asked that the 5th Circuit place its appeals in abeyance “pending the agency’s reconsideration of the rule.” It said counsel for the appellees in both cases did not oppose its request.
The Biden administration’s effort to expand overtime eligibility to millions of U.S. workers would have pushed the annual minimum threshold under the FLSA to $58,656 in 2025 with automatic, additional increases every three years beginning in July 2027. An initial increase to $43,888 per year took effect before Texas federal judges blocked it along with the rule’s other components.
The entire policy is almost certain to be erased by the second Trump administration, according to attorneys who previously spoke to HR Dive. Prior to the Biden-era rule, DOL had last increased the overtime-pay threshold during Trump’s first administration in 2019.
