A federal judge has blocked a new rule from the Biden administration that would have extended overtime pay to more than 4 million U.S. workers. This summer, the same judge temporarily blocked the rule from going into effect. NACS was among the organizations that helped bring the lawsuit.
Under the now-blocked rule, anyone making less than $844 per week ($43,888 per year) would have been required to be paid overtime pay for any hours worked beyond 40 per week. On January 1, 2025, that threshold would have increased to $1,128 per week ($58,656 per year).
According to the Associated Press (AP), “the previous threshold of $35,568—which was set in 2019 under the Trump administration—is poised to go back into effect.”
The AP quoted David French, executive vice president of government relations for the National Retail Federation, who said the new rule “would have curtailed retailers’ ability to offer the most flexible, generous and tailored benefits packages to lower-level exempt employees across the industry.”