New Overtime Law in Limbo, But Still Helping Thousands | NBC Southern California
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New Overtime Law in Limbo, But Still Helping Thousands

Judge halted new OT law, but many companies gave employees raises or started paying more employees overtime

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    A law that would have made millions of workers eligible for overtime was blocked by a federal judge in November, but the law still may have resulted in higher wages for the workers it was intended to help, NBC News reported.

    The law would have required companies to pay overtime to salaried/exempt workers who work more than 40 hours per week but made under $47,476 per year. Under current law, employers do not have to pay overtime to salaried/exempt workers if they make more than $23,661.

    A federal judge issued a preliminary injuntion, saying the Department of Labor's rule exceeds the authority the agency was delegated by Congress, in late November, just one week before it was supposed to take effect on Dec. 1.

    But according to a study by compensation information and research company PayScale, many employers gave employees raises, boosting them about the $47,476 threshhold, or reclassified employees as hourly working, making them eligible for overtime.