AUSTIN, Texas – The Obama administration says it will challenge a federal court’s decision to block implementation of a regulation that would make an estimated 4 million more higher-earning workers eligible for overtime pay.
The U.S. Labor Department filed a notice of appeal Thursday, the same day the administration’s rule had been set to take effect nationwide.
Twenty-one states sued to block the rule, arguing it would unduly burden the public and private sectors.
Last week, a federal judge in Texas issued an injunction suspending it to allow for further scrutiny.
The lead plaintiff is Nevada Attorney General Adam Laxalt, who’s a frequent critic of what he calls Obama administration overreach. Texas, which has sued the Obama administration nearly 50 times, is also a plaintiff.