Employers nationwide gave raises to avoid paying overtime. Now they're taking them back.

By:  Jack Smith IV

Garrett Hutcheson, a supervisor at a catering supply company in the southwest, was told he was getting an enormous raise: a $7,000 bump to his salary of around $40,000. The extra cash meant he could move his youngfamily out of his girlfriend's parents' house. Instead, he'll be staying there, working long night shifts without overtime pay.

"This would've gotten us on our feet," Hutcheson said. "I've still got hope, but I'm not optimistic."

Pay increases like the one Hutcheson got, the result of a regulatory rule change by the Obama administration, were set to help more than 4 million workers. Just the expectation of the new rule triggered raises for workers across the country, including managers at WalmartNationwide Health Insurance and at least half a dozen universities. Now, as a result of the ongoing tussle between the administration and federal courts regarding overtime pay that began in 2014, an injunction against the rule means a victory for big business interests — and rescinding of raises for Hutcheson and an unclear number of fellow workers.

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