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21 states sue to block overtime rule

The rule is scheduled to take effect on Dec. 1, and will raise the salary threshold at which employees can be exempt from mandatory overtime pay when they work more than 40 hours in a week.

By Jack Craver | Updated on September 22, 2016
The rule is scheduled to take effect on Dec. 1, and will raise the salary threshold at which employees can be exempt from mandatory overtime pay when they work more than 40 hours in a week. (Photo: iStock)

Business groups and state governments are seeking to halt the implementation of a new overtime rule announced earlier this year by the Obama administration.

The rule, which is scheduled to take effect on Dec. 1, will significantly raise salary threshold at which employees can be exempt from mandatory overtime pay when they work more than 40 hours in a week. The threshold will go up from $23,600 a year to $47,476, extending overtime to more than 4 million workers who were previously exempt, according to an estimate by the U.S. Department of Labor.

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Jack Craver

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