A Texas-based federal judge appeared skeptical of the analysis the US Department of Labor used to estimate the impact of its expansion of overtime pay protections.

During a hearing Friday in a lawsuit brought by the state of Texas and business groups challenging a Biden administration rule to expand overtime eligibility to 4 million workers, District Judge Sean D. Jordan doubted the DOL’s justification for the rule given the data it was relying on.

The Census Bureau survey used to determine the rule’s salary level “is self reporting from individuals” and creates a “black box” around how the agency estimated the impacts of the rule, Jordan said.

“We’re talking about when is salary crossing the line and becoming predominate, and what are the metrics the department is using?” Jordan asked the DOL.

Texas and the coalition of business groups had argued that the rule, which is set to expand overtime pay eligibility to salaried workers earning less than $58,656 a year starting Jan. 1, goes beyond the agency’s authority and was arbitrary and capricious in violation of the Administrative Procedure Act.

They cite prior court rulings that have found that the salary threshold can be set so high it replaces other parts of the law that require the agency to consider a worker’s job duties when determining overtime eligibility.

Part of the rule already went into effect in July, with the...

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