Federal Overtime Rule Dealt a Setback

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A U.S. District judge in Texas has ruled that the U.S. Department of Labor’s (DOL) new overtime rule, which would raise the salary threshold of those entitled to overtime pay, will not become effective because the agency exceeded its authority in developing the new rule. A number of states and business groups had previously filed legal challenges against the rule. While the preliminary injunction puts the rule on hold, DOL has the ability to appeal.

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