On Tuesday, U.S. District Judge Amos Mazzant in the Eastern District of Texas blocked a new rule granting an estimated 4.2 million workers overtime pay. Despite the workers’ eligibility to receive the bonuses, the time-and-a-half wages for each hour they put in beyond 40 a week will not be rewarded under Judge Mazzant’s new ruling.
Christine Owens, head of the National Employment Law Project, a worker advocacy group, said, “Unfortunately, for the time being, workers will continue to work longer hours for less pay thanks to this obstructionist litigation.”
However, small business and other trade groups have argued the overtime rule would swell labor costs and force employers to demote managers to hourly employees. They also believe this would effectively tarnish morale in the workplace.
Twenty-one states had challenged the overtime expansion rule, claiming Congress never intended to set any salary threshold for the exemptions. According to the Labor Department in May, the proposed rule would nearly double the threshold at which executive, administrative and professional employees are exempt from overtime to $47,476 from $23,660.
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