New overtime law blocked by federal judge

83,000 Massachusetts workers will wait for overtime pay, if they get it at all

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CHICOPEE, Mass. (WWLP) – A new federal law promised overtime pay for millions of American workers. However a federal judge has blocked it, just 10 days before you could have seen more money in your wallet.

Right now there are millions of Americans who work overtime, and don’t get paid for it. That’s why President Obama signed a law last May, doubling the overtime threshold. Starting December 1st, anyone who made less than $47,476 a year, was supposed to be entitled to overtime pay.

However, now it’s being blocked, and might not happen at all. A federal judge in Texas blocked the rule, agreeing with 21 states that argue it’s unlawful, and could hurt businesses and local economies. Although Western New England Economics Professor Karl Petrick said that’s up for debate.

“Remember that workers are also customers, so a little extra pay in their pocket would also be spent,” Petrick told 22News.

Here in Massachusetts, more 83,000 workers would have been entitled to overtime pay under the new law.

To read the full report from CNBC, Click Here.

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