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New Overtime Rule Stalled

The Labor Department’s new overtime rule set to go into effect on December 1, was blockedon Tuesday by a Federal Judge.

A preliminary injunction halting implementation of the new rule was issued to preserve the status quo while the Court determines both the authority of the Labor Department to amend current overtime regulations and review the validity of the rule itself.

The new rule would have extended overtime pay to more than 4 million workers starting on December 1. The rule required employers to pay overtime to most salaried workers earning less than $47,476 annually, a significant increase from the $23,660. Due to the complexity of the case, it is likely to continue into next year. The additional time gives President-elect Trump the opportunity to scrap the rule by dropping the government defense of the rule.