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Judge blocks new federal overtime rule

November 23, 2016 Sherman, Texas — A federal judge issued a preliminary injunction Nov. 22, blocking a new rule to extend overtime pay.

In his ruling in the State of Nevada and 20 other states vs. the U.S. Department of Labor, U.S. District Judge Amos Mazzant of the Eastern District of Texas granted the plaintiffs' motion for a nationwide injunction.

The rule, which was finalized by the Department of Labor earlier this year, was to take effect Dec. 1 and would have doubled the salary threshold — from $23,660 to $47,476 per year — under which most salaried workers are guaranteed overtime. The rule did not apply to hourly workers.

"We strongly disagree with the decision by the court, which has the effect of delaying a fair day's pay for a long day's work for millions of hardworking Americans," said the Department of Labor in a statement. "The department's overtime rule is the result of a comprehensive, inclusive rulemaking process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options."

The Department of Labor said it received more than 270,000 public comments on the rule, including the Association's September 2015 letter.