Court Blocks Federal Plan to Extend Overtime Pay

An estimated 4 million American workers no longer eligible for overtime pay.

A federal court has blocked the start of a rule that would have made an estimated 4 million more American workers eligible for overtime pay heading into the holiday season, according to the Associated Press.

The rule, which was to take effect on Dec. 1, would have raised the threshold from receiving mandatory overtime pay from $23,660 to $47,476 per year, or $455 to $913 per week.

As a result of Tuesday's ruling, overtime changes set to take effect Dec. 1 are now unlikely to go into effect before President-elect Donald Trump takes office. Trump has spoken out against Obama-backed government regulation and generally aligns with the business groups that stridently opposed the overtime rule.

The U.S. District Court in the Eastern District of Texas granted the nationwide preliminary injunction, saying the Department of Labor's rule exceeds the authority the agency was delegated by Congress.

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