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Thursday, September 21, 2017

Fair Labor Standards Act (FLSA) proposed rule struck down

On August 31 the Obama-era-proposed rule making millions of more Americans eligible for overtime pay was struck down on the basis the Labor Department set an excessively high salary threshold to determine which employees are exempt from overtime. US District Judge Amos Mazzant’s ruling affects an estimated 4.2 million workers who would have been eligible for time-and-a-half wages for each hour they put in beyond 40 a week.

The decision was widely anticipated after Mazzant granted a preliminary injunction in late November, blocking the Obama administration’s effort to extend overtime pay to millions more workers, after 21 states and dozens of business groups asserted that the rule was unlawful and would cause them irreparable harm. The new rule would have taken effect on December 1, 2016.

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