Overtime Regulations Blocked in Federal Court

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 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 Dec. 1.Sheridan County Chamber of Commerce CEO Dixie Johnson, explained how this ruling bodes well for the state.

Johnson also said that the decision to change the salary threshold would be better done in the hands of each state.

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.