Currently, employees are automatically eligible for overtime unless they make more than $23,660 a year, but the rule would lift that to $47,476.
The Obama administration on Thursday filed a notice of appeal at the U.S. District Court for the Eastern District of Texas to challenge a federal judge's ruling that halted the December 1 implementation of sweeping overtime regulations.
Laxalt said in a press release, "Federal agencies can not unilaterally reinterpret federal law to impose burdens on state governments and businesses, and today's preliminary injunction reinforces the importance of the rule of law and constitutional government".
The judge ruled that the DOL "exceeds its delegated authority and ignores Congress's intent by raising the minimum salary level", meaning that the Final Rule is unlawful.
The injunction by U.S. District Court Judge Amos Mazzant in Sherman, Texas, is only a temporary measure until he makes his final ruling.
The appeal, however, does not immediately lift the injunction and employers are not required to comply with the new overtime rules until the court takes action.
Rep. Mia Love, R-Utah, has been on record as saying the new rule was a slap in the face to Utah business owners.
After upholding the rule three weeks earlier from a legal challenge brought by the National Association for Fixed Annuities, Judge Randolph D. Moss on November 23 refused to put the rule on hold while NAFA appealed to the U.S. Court of Appeals for the D.C. Circuit.
Over 4 million private workers in the US were expected to see a pay boost from President Barack Obama's overtime rule.
This means that salaried "white-collar" workers earning less than $47,476 would have been entitled to time-and-a-half overtime for hours worked over 40 per week. Do companies reverse the payroll changes that they have made in preparation for compliance, with the risk that the Department of Labor may eventually successfully defend law?
But a rule with such wide impact on the economy should have gone through Congress, which is what the business community and 21 states are arguing in the lawsuit.
The Labor Department said it is "considering all of its legal options" in the wake of the stay. Contact your congressional representatives and let them know that you don't want to see full-time workers living in poverty.
In a statement following the court order earlier this month, the Department of Labor stood behind its rule.
Right now, business owners do not have to change anything about the way they pay their employees. A separate survey found that the majority of retail managers and assistant managers the regulations are supposed to help oppose the plan, citing losses in schedule flexibility, benefits and professional development opportunities that would come with switching from salaried to hourly positions.