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New Overtime Pay, Compensation Law: Delayed or Dead?

A federal judge in Texas has temporarily blocked a new overtime law from the Department of Labor. The preliminary injunction potentially stops four million additional Americans from earning overtime — potentially saving business owners payroll dollars along the way.

Historically speaking, overtime has been limited to employees who earn about $23,000 or less per year. The revised rules would have allowed employees earning $47,476 annually to accumulate time-and-a-half pay for work that exceeds 40 hours per week. Roughly 44 percent of small businesses employ at least one person that would be eligible under the rule, according to the National Federation of Independent Business.

However, a federal judge last week issued a preliminary injunction that blocks the new overtime rules from activating. The National Retail Federation and the NFIB applaud the ruling. President-elect Donald Trump has also vowed to eliminate the new overtime rules. A final decision on the new overtime law is still pending.

The Department of Labor is still pushing to activate the new regulations. But the overtime rules face lawsuits in at least 21 states, according to At least 21 lawsuits against the law are pending in multiple U.S. states, according to CNBC.  

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