Budget & Finance

Districts Won’t Owe Extra Overtime Costs After Court Nixes Federal Rule

By Evie Blad — November 18, 2024 2 min read
Image of a clock, calendar, and a pencil.
  • Save to favorites
  • Print

Districts will be spared additional overtime costs after a federal judge struck down a rule that would have required them to offer the additional pay to a larger swath of employees.

In a Nov. 15 order, Judge Sean Jordan of the U.S. District Court for the Eastern District of Texas blocked the rule by the U.S. Department of Labor that would have extended overtime pay to an estimated 4 million employees nationwide who were previously considered exempt under the Fair Labor Standards Act.

Teachers and administrators would have remained exempt from federal overtime requirements under that rule, finalized by the agency in April—but districts expected employees like school nurses, athletic trainers, and librarians to be affected.

Since 2019, eligible employees who earn less than $35,308 a year have qualified for overtime pay if they work more than 40 hours a week. The new rule was scheduled to set a maximum salary level of $43,888 by July 1, but Jordan previously paused its implementation through a preliminary injunction in June. His final ruling will block that change, and a second Jan. 1 increase that would have further raised the threshold to $58,656.

The rule also would have automatically increased salary thresholds every three years starting in July 2027, relying on new federal data on average wages, the Labor Department said.

The Labor Department exceeded its regulatory authority when it created the rule, Jordan wrote in his order, in part because its plan did not properly screen out employees with management and administrative duties, who are exempt from federal overtime requirements.

Trump not likely to challenge ruling

The Biden administration could appeal the ruling, but the incoming administration of President-elect Donald Trump is not likely to continue any legal objections when he takes office in January. During Trump’s previous term, the Labor Department did not object when a federal court struck down a similar 2016 rule.

The Association of School Business Officials and AASA, the School Superintendents Association, were among the industry groups which sought to delay the rule’s implementation, warning of financial and logistical concerns.

To prepare for the rule’s implementation, districts were set to decide if they would restructure employees’ responsibilities to reduce the likelihood of overtime hours, hire additional staff to reduce workloads, or provide slight pay increases to employees near the exemption threshold, Noelle Ellerson Ng, the associate executive director of advocacy and governance for AASA, said in a May interview.

Districts that opted to pay overtime to their newly qualified employees would have also had to adopt new methods to track their work hours and ensure compliance with the rule, she said.

The lawsuit was brought by the state of Texas and a coalition of trade associations and employers.

“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,” Jordan wrote in his ruling.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
Unlocking Success for Struggling Adolescent Readers
The Science of Reading transformed K-3 literacy. Now it's time to extend that focus to students in grades 6 through 12.
Content provided by STARI
Jobs Virtual Career Fair for Teachers and K-12 Staff
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
Climb: A New Framework for Career Readiness in the Age of AI
Discover practical strategies to redefine career readiness in K–12 and move beyond credentials to develop true capability and character.
Content provided by Pearson

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Budget & Finance 5 Tips for Teachers to Save on Classroom Supplies This Year
Utilizing teacher discounts, reusing items, and using social apps like Facebook and Nextdoor can help save money this shopping season.
5 min read
People seen shopping for schools supplies at a Staples retail store days before the start of the new school year, New York, NY, September 2, 2024.
People shop for school supplies at a Staples store days before the start of the new school year in New York, on Sept. 2, 2024. Teachers across the country are facing rising classroom supply costs and uncertainty as looming tariffs and delayed federal funding force many to get creative and thrifty about how they prepare for the school year.
Anthony Behar/AP
Budget & Finance Teacher PD, Jobs on the Chopping Block as Trump's Funding Freeze Continues
In a new survey, superintendents detail the tradeoffs they expect to make if billions in federal funds don't arrive.
Instructional coach Kristi Tucker posts notes to the board during a team meeting at Ford Elementary School in Laurens, S.C., on March 10, 2025.
Instructional coach Kristi Tucker posts notes during a team meeting at Ford Elementary School in Laurens, S.C., on March 10, 2025. Professional development is one area many districts say they'll cut if the Trump administration continues to withhold billions of dollars in federal school funds.
Bryant Kirk White for Education Week
Budget & Finance How This District Headed Off Misinformation About Its School Bond Campaign
School bonds are hot-button issues for districts—and ripe for misinformation campaigns.
5 min read
Image of a leader replacing FA"KE" with FA"CT"
Diki Prayogo/iStock/Getty