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Federal judge blocks U.S. overtime rule

Published: November 23, 2016
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A federal judge has blocked the implementation of a new rule that would have extended overtime pay to 4 million Americans.

 

Created by the Obama administration, the new rule—part of the Fair Labor Standards Act (FLSA)—was set to take effect Dec. 1 and would have doubled the salary threshold that deemed whether an employee was exempt from overtime pay. Workers earning less than $47,500 a year and working more than 40 hours per week would be eligible for overtime pay. The threshold would readjust every three years to reflect wage changes.

 

U.S. District Judge Amos Mazzant III issued a preliminary injunction in the case, siding with plaintiffs who argued that the rule would hurt business by increasing salary costs and eventually leading to layoffs.

 

The future definition of overtime rules will most likely remain undefined until after President-elect Donald Trump is set to take office Jan. 20, 2017.