Labor Department to Decide on Biden Overtime Rule by June 30

The US Department of Labor will make a “final decision” on how to proceed with its regulation governing overtime pay by the end of June, the government told a district court judge.

The DOL faces multiple lawsuits over its 2024 rule that would have expanded overtime eligibility for millions of workers by raising the exemption threshold for people to make time-and-a-half wages to $58,656.

The regulation also updated the test used to calculate if an employee should fall into a carveout from overtime pay requirements for certain “bona fide executive, administrative, or professional” workers.

The Association of Christian Schools sued the DOL in US District Court for the District of Columbia, claiming it violated the Administrative Procedure Act.

The Biden rule was vacated by two Texas federal judges before it was set to go into effect and the Trump administration asked Judge Amit Mehta to pause the case in DC while it reconsidered the rule.

Mehta agreed Monday to stay the case until June 30 after the DOL told him in a status report it had “almost completed its decision-making process,” on the rule.

The overtime regulation was put on the DOL’s long-term agenda last fall with no target goal date for a new policy.