(The Center Square) – Texas has won another lawsuit against the Biden administration, this time over a federal rule the Biden administration resurrected first implemented under the Obama administration overhauling employer overtime requirements.
At issue is the Fair Labor Standards Act, which includes requirements for employers to pay overtime compensation. The requirement includes exemptions for “any employee employed in a bona fide executive, administrative, or professional capacity” (EAP) stating that minimum wage and overtime pay requirements do not apply to this category. Under the Obama administration, the U.S. Department of Labor promulgated a rule raising the minimum salary at which EAP employees could be exempt from minimum wage and overtime pay under the law – changing the exemption statuses of millions of employees.
Attorney General Ken Paxton sued and a federal court vacated the rule in 2017.
The Biden administration attempted to revive the rule by republishing it with minor changes. In June 2024, Paxton sued again, arguing it violated the Administrative Procedure Act, exceeds the scope of the law, and is arbitrary and capricious. This time, the U.S. District Court Southern District of Texas Sherman District vacated the rule. It said in its 62-page order, “the Fifth Circuit has made clear that district courts should generally ‘nullify and revoke’ illegal agency action. The Court finds that such relief is appropriate here.”
“The 2024 Rule impacts millions of employees in every facet of the economy, as well as state and local governments, and will impose billions in costs to employers. And considering the volume and variety of the trade organizations’ members who are entitled to relief, it would be impractical, if not impossible, to fashion party-tailored relief here,” the order states. “Therefore, consistent with controlling circuit precedent, the proper remedy is” to vacate it.
The court also issued a final judgment vacating the rule in its entirety and denying all requests for relief.
In response, Paxton said, “Once again we have stopped an out-of-control federal agency from unilaterally rewriting the law to suit the Biden-Harris Administration’s unconstitutional agenda. Texas defeated this unlawful policy in court for a second time.”
Texas has sued the administration 101 times, The Center Square reported.
Over the last four years, Texas sued the administration asking courts to block a wide range of actions it took targeting the Texas oil and natural gas industry, Texas’ border security efforts, Texas’ election integrity efforts, Texas’ abortion bans, and many others. Texas also sued to block Biden administration vaccine mandates, employee and worker mandates, military mandates, gun restriction mandates, and dozens of other mandates. Texas also sued to block Biden administration actions that would have stripped funding for Texas’ Medicaid, rural hospital and child support programs, among others, The Center Square reported. Texas has so far won most of them.
