4.2 million Americans lose overtime pay and Republicans rejoice the ‘victory’ for small businesses

Republicans are jubilant after a federal judge granted a preliminary injunction to president Obama’s overtime pay rule, dashing hopes for millions of Americans who would have benefitted from being paid overtime.

The most significant intervention from the president on wages - set to start 1 December - is now in jeopardy, after he failed to persuade congress to raise the minimum wage from $7.25 per hour.

The extra pay would have aided 4.2 million Americans - many of whom would have voted for Donald Trump - as it doubled the threshold of eligibility for overtime pay for people who earn an annual salary to $47,476 and work more



than 40 hours per week.

The judge, Amos Mazzant, an Obama appointee in eastern Texas, cited the $295 billion bill, the lack of worker flexibility and red tape as reasons to halt the measure. The halting is temporary, but he has signaled that he will take the view with 21 state attorneys general and a small business association which sued to block the new law.

The US chamber of commerce said it was a victory for small businesses who had been stifled by red tape.

Although Mr Trump wooed middle class voters with the promise of jobs and bringing back manufacturing, he also said he would fight for small businesses and red tape.