Judge puts overtime pay hike on hold

U.S. District Judge Amos Mazzant in the Eastern District of Texas yesterday blocked the Obama administration's overtime rule from taking effect on Dec. 1.

His decision to grant a preliminary injunction affects an estimated 4.2 million workers who would be eligible for time-and-a-half wages after they work 40 hours in a week. The Labor Department's rule released in May would nearly double the threshold at which executive, administrative and professional employees are exempt from overtime to $47,476.

“This is a victory for small-business owners and should give them some breathing room until the case can be properly adjudicated,” said Juanita Duggan, CEO of the National Federation of Independent Business, which is separately challenging the requirement.

Mazzant's decision indefinitely stops the new overtime rule from taking effect while he weighs any challenges, according to USA Today.

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