A federal judge Thursday struck down an Obama-era rule expanding eligibility for overtime pay, saying the Labor Department set an excessively high salary threshold to determine which employees are exempt from overtime.

The rule released by the Obama administration in May 2016 would have nearly doubled the threshold at which executive, administrative, and professional employees are exempt from overtime from $23,660 to $47,476. Many businesses said the rule would have sharply increased labor costs and hurt morale by forcing employers to demote managers to hourly employees.

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