A federal judge has ordered a nationwide hold on a new overtime rule that had been set to take effect next month.
The rule would have essentially doubled the threshold for when salaried workers must be paid overtime – from the current $23,660 a year to $47,476.
Wisconsin was one of 21 states that challenged the measure in federal court and asked for an injunction while the case proceeds. A federal judge in Texas on Tuesday granted that request, saying the Department of Labor exceeded its authority when it wrote the rule and is likely to succeed in its lawsuit.
Critics of the rule say it will drive up business costs and force some employers to lay off workers. Supporters say the move is needed to keep lower-paid workers from being abused.
In a statement, Wisconsin Attorney General Brad Schimel said he’s “incredibly happy” the court put the law on hold.