Nevada v. United States Department of Labor

**Nevada v. U.S. Department of Labor: Overtime Rule Blocked** This case involved a challenge to new federal rules that would have made millions more workers eligible for overtime pay. In 2016, the U.S. Department of Labor created a rule raising the salary threshold for overtime exemptions from $23,660 to $47,476 per year. This meant that salaried employees earning less than $47,476 annually would automatically qualify for overtime pay when working more than 40 hours per week, regardless of their job duties. Several states and business groups sued to stop this rule from taking effect, arguing the Department of Labor exceeded its authority and didn't follow proper procedures when creating the regulation. The court sided with the challengers and temporarily blocked the overtime rule from going into effect. The judge found that the Department of Labor likely violated federal administrative law when creating the new salary threshold. **What This Means for Workers:** This ruling prevented millions of workers from gaining automatic overtime protections. Employees who would have become eligible for overtime pay under the higher salary threshold remained classified as exempt from overtime rules. The decision meant that many salaried workers earning between $23,660 and $47,476 continued to work extra hours without additional compensation.