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Overtime

Important update: Judge grants injunction to stay new federal overtime rules scheduled for December 1, 2016

Today, a federal judge in Texas blocked a rule that would have extended overtime eligibility to an estimated four million Americans. The change was scheduled for December 1, 2016.

The U.S. Labor Department’s overhaul to the overtime rule would have 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. The Obama Administration endorsed this new rule to boost pay for workers at the lower end of the income ladder. Business groups said the new rule changes would have eventually led to layoffs.

For now, the new overtime rule’s long-term future remains in limbo. The Department of Labor issued a statement that it was considering its legal options.

Pamela A. Smith
Law Office of Pamela A. Smith
233 Needham Street, Suite 540
Newton, MA 02464
617-969-2900

pam@pamsmithlaw.com

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