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Texas judge blocks new overtime pay rule

Published: Tuesday, November 22nd 2016, 6:36 pm EST  
Updated: Tuesday, November 22nd 2016, 7:29 pm EST | By RNN Staff
Twenty-one states filed suit, saying the law would significantly increase their employment costs. (Source: Raycom Media)Twenty-one states filed suit, saying the law would significantly increase their employment costs. (Source: Raycom Media)

(RNN) – A Texas judge has temporarily blocked a rule to give mandatory overtime pay to workers making less than $47,500 a year.

Twenty-one states filed suit, with many business owners arguing the law would significantly increase their employment costs and that the jump from the current rate of $23,660 was too high.

“The finalized overtime rule hurts the American worker. It limits workplace flexibility without a corresponding increase in pay and forces employers to cut their workers hours,” Texas Attorney General Ken Paxton said in a statement.

The law was set to take effect Dec. 1.

The states of Alabama, Arkansas, Arizona, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Utah and Wisconsin all joined the suit.