Labor Department Drops Defense of Biden-Era Overtime Expansion

The US Department of Labor is ending its legal defense of a Biden-era regulation that widened the eligibility for overtime pay for millions of workers.

The DOL agreed to dismiss its appeal in the US Court of Appeals for the Fifth Circuit after a Texas district judge sided with software company Flint Avenue LLC and found the 2024 rule was unlawful.

The appeal of that decision, and several other cases over the legality of the rule, have been stayed by courts while the DOL reconsiders the policy which, had it gone into effect, would have made around four million more workers eligible for overtime pay.

The rule updated the test to determine which employees are considered “bona fide executive, administrative, or professional” workers and therefore ineligible for time-and-a-half wages. It also boosted the exemption threshold to $58,656 for white-collar workers.

John Vecchione, senior litigation counsel at the New Civil Liberties Alliance representing Flint Avenue, said in a statement Tuesday that the 2024 regulation would have changed overtime status for “millions of American workers with flexible schedules,” and eliminated jobs.

“DOL is taking the lawful and wise course by dismissing its appeal and letting stand the district court’s order to set aside and vacate the rule,” he said.

The settlement in the fifth circuit comes after the government told a DC federal judge that the DOL would conclude its decision-making on the overtime rule by June 30.

Flint Avenue was also represented by Karen Cook, P.L.L.C. Justice Department attorneys represented the DOL.

The case is Flint Avenue v. LABR, 5th Cir., No. 25-10349, 5/5/26.