A federal judge in Texas has made permanent an earlier finding that the Obama administration overstepped its bounds by extending overtime pay to 4.2 million workers.
U.S. District Judge Amos Mazzant in November had issued a preliminary injunction blocking the mandate from the U.S. Labor Department. He struck down the mandate in a permanent order issued Aug. 31.
The rule change would have extended overtime protection to salaried employees making less than $47,476 a year.
The proposal had employers in a range of industries, including restaurants, scrambling to decide whether to raise the salaries of affected employees to the new threshold, start paying them overtime or limit their hours to 40 a week.
South Carolina Attorney General Alan Wilson, who joined a lawsuit challenging the mandate, hailed the ruling in a news release.
“This overtime rule is bad for South Carolina businesses,” Wilson said. “It would take away employment opportunities for South Carolinians.”