TEXAS - A federal judge in Sherman has blocked a White House effort to make millions more workers eligible for overtime pay, handing a victory to Texas and 20 other states that had challenged the new Labor Department rule.
U.S. District Judge Amos Mazzant granted a nationwide injunction Tuesday against the 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.
Paxton issued the following statement Tuesday
“The Obama administration proved true to form when it ordered the Department of Labor to revise its interpretation of the Fair Labor Standards Act. Namely, the administration assumes that through force of will alone, it could order a new economic reality into existence. The finalized overtime rule hurts the American worker. It limits workplace flexibility without a corresponding increase in pay and forces employers to cut their workers hours. All in all, it exchanges the advantages of negotiated benefits, personal to each worker, with a one-size-fits-all standard that only looks good in press statements. Not on my watch.”
The Department of Labor also issued a statement in response to the ruling:
“We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The department’s overtime rule is the result of a comprehensive, inclusive rulemaking process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.”
Read the complete article on the Texas Tribune's website here.