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National

Judge blocks Obama's rule to extend overtime pay

Opening sequence

Opening sequence

National

Judge blocks Obama's rule to extend overtime pay

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COMING UP:Judge blocks Obama's rule to extend overtime pay

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Transcript

00:00:00
>> That's why we took action to help millions of workers finally collect the overtime pay they've earned.>> One of President Obama's signature achievements to boost wages blocked by a federal judge. The rule, set to take effect December 1st, would have extended overtime pay to more than 4 million Americans.
00:00:17
But a US district judge in Texas, agreed with 21 states and a coalition of business groups, that the rule was unlawful and granted their motion for an injunction. Issued by the Labor Department, the order would have doubled the maximum salary a worker can earn to $47,500 and still be illegible for overtime pay.
00:00:38
The new threshold would have been the first significant change in 40 years. The judge, however, said the Labor Department overstepped its bounds, and that it does not have authority to rule on which workers are eligible for overtime, based on salary alone. The US Chamber of Commerce applauding his decision a top official there claiming it would have been costly and disruptive to businesses.
00:01:01
While worker's advocates like the Economic Policy Institute, call it a blow to the tens of millions of employees forced to work extra hours with no compensation. The labor department says it is confident that its policy of what it calls a fair days pay for a long days work is, in fact legal and is weighing all of its options including a possible appeal.