Overtime Rule Strike Down Brings Relief for Small Business

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Almost all hourly workers are entitled to overtime pay after 40 hours a week, but many salaried workers are exempt.

Small-business owners are expressing relief after a federal judge in Texas struck down a Biden administration rule that would have significantly expanded overtime pay eligibility for salaried workers.On November 15, the Texas court's decision blocked the rule, which sought to increase the salary threshold for overtime eligibility to $58,656 starting January 1, up from $43,888 as of July 1.With the ruling, the threshold reverts to the $35,568 level set in 2019 under the Trump administration.

John Arensmeyer, the founder and CEO of Small Business Majority, said the proposed threshold increase would have been overwhelming for businesses still recovering from the pandemic.'Although blocking any increase to the threshold fails to take into account inflation, the Department of Labor tried to do too much too fast resulting in sticker shock for small businesses that are still recovering from the pandemic,' Arensmeyer said.

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