Currently those making $24,000 a year or less are entitled to time-and-a-half pay for all hours worked past 40 in a week. (Photo: Shutterstock)

The Obama administration wanted to raise the salary below which workers would be entitled to overtime to $47,000 from its current level of $23,660. That didn't happen, thanks to a Texas judge who blocked it, but that wasn't the end of it. The law, like many others, entered was dormant but not dead. This week, the Labor Department unveiled its revised proposal, which increases the threshold to $35,308 and would make 1.3 million more Americans eligibility for overtime pay.

“Employers who recall the feeling of panic when the Obama administration issued its Final Rule doubling the salary basis threshold in May 2016 will breathe a sigh of relief over the much smaller increase proposed by the Department of Labor yesterday,” says Ryan Mick, a partner with law firm Dorsey & Whitney.

According to Bloomberg Law, the measure is still likely to face court challenges from both sides of the issue—both worker advocates, who say the DOL hasn't done the analysis to justify abandoning the Obama-era rule, and businesses, who fear what it will do to payrolls.