Judge blocks overtime rule that would have impacted millions of US workers
A federal judge in Texas granted an emergency injunction Tuesday against the Labor Department’s overtime rule, Politico reports.
Businesses had been scrambling to prepare for the onset of the Fair Labor Standards Act, which changes the threshold for overtime pay to $47,500. Salaried workers who make less than that would be eligible for overtime pay when they work more than 40 hours in a week.
As the rules currently work, companies can avoid paying overtime to full-time salaried employees making as little as $23,660 by classifying them as “exempt.” Those workers aren’t entitled to overtime pay even if they work more than 40 hours a week.
The new overtime rule was supposed to go into effect on Dec. 1.