After a federal judge in Texas blocked a White House effort to make millions more workers eligible for overtime pay last week, the Department of Justice filed a notice to appeal the preliminary injunction on behalf of the Department of Labor, the department confirmed.
The Sherman judge's injunction came as a victory for some leaders in Texas who, along with 20 other states, challenged the new Labor Department rule which was set to go into effect Dec. 1. The rule aimed to double the salary threshold under which employees qualify for overtime pay, extending it to an estimated 4.2 million more workers.
In September, Texas Attorney General Ken Paxton teamed up with his counterpart in Nevada to file a lawsuit challenging the rule on behalf of 21 states. They argued it amounted to overreach by the federal government that would place a new burden on businesses.