Federal court blocks expansion of overtime pay rule after states sued
LAS VEGAS — A federal court is blocking implementation of a regulation that would make an estimated 4 million more higher-earning workers eligible for overtime pay.
The U.S. District Court in the Eastern District of Texas granted a nationwide preliminary injunction Tuesday, November 22nd that prevents the Department of Labor from implementing the changes until the rule’s legality can be further examined. The order comes after 21 states sued to block the rule before it took effect on December 1st.
Wisconsin was one of the 21 states to sue in this case.
Attorney General Brad Schimel issued the following statement:
“I’m incredibly happy the Court agreed the rule should be put on hold. There’s no greater honor than representing millions of Wisconsinites in the continuous fight for the return of power to our citizens, away from an out-of-control federal bureaucracy in Washington D.C. Wisconsin must have the ability to set its own priorities and policies.”
The lead plaintiff was Nevada Attorney General Adam Laxalt, who’s a frequent critic of what he calls Obama Administration overreach.
The regulation would shrink the so-called “white collar exemption” and more than double the salary threshold under which employers must pay overtime to their workers.
Laxalt said the rule would burden private and public sectors.