Federal judge blocks new overtime pay rule

A federal judge on Tuesday temporarily blocked an Obama administration rule change that would have expanded overtime exemptions for salaried professionals. Under current law, employers do not have to pay overtime to workers making more than $23,600 per year. The proposed change, set to go into effect Dec. 1, would have raised that limit to $47,500, making about 4 million more workers eligible for overtime pay. The U.S. District Court in the Eastern District of Texas ruled the Obama administration exceeded its authority in raising the cap. Twenty-one states challenged the new rule in federal court. Although the lawsuit will continue to move forward, it’s not clear what President-elect Donald Trump’s administration will do with the rule. Trump has generally spoken out against government regulation of businesses, and some analysts believe his administration likely will rescind the rule change.

The Associated Press contributed to this report.