Federal Judge Blocks Overtime Pay Rule set to go into effect Dec. 1

Excerpts from Northwest Public Radio article by Brakkton Booker. See full article including full court document here: http://www.npr.org/sections/thetwo-way/2016/11/22/503081151/federal-judge-blocks-obama-administrations-overtime-pay-rule

With just over a week before it was scheduled to take effect, a federal judge has blocked the implementation of an Obama administration rule that would have extended overtime eligibility to some 4 million Americans.

The Labor Department’s sweeping overhaul to the overtime rule required employers to pay time-and-a-half to their employees who worked more than 40 hours in a given week and earned less than $47,476 a year.

That salary threshold is about twice what currently allows workers to be exempted from overtime. As NPR’s White House Correspondent Scott Horsley told our Newscast Unit, supporters of the rule called it “long overdue” as inflation took its toll on overtime protection.

On Tuesday, U.S. District Judge Amos Mazzant III issued a preliminary injunction in the case, siding with plaintiffs who said the new overtime rules would have caused an uptick in government costs in their states and made it mandatory for businesses to pay millions in additional salaries. Business groups said the new rule changes would have eventually led to layoffs.