Obama White-Collar Overtime Pay Mandate Blocked by Judge

  • Change would have required overtime pay for more employees
  • States win order blocking rule they said would stymy growth

President Barack Obama speaks on Sept. 17, 2016, in Washington.

Photographer: Olivier Douliery-Pool/Getty Images
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An Obama administration policy that would have given more white-collar workers overtime starting Dec. 1 was blocked nationwide by a federal judge in Texas.

The decision Tuesday is a victory for 21 states and dozens of business groups that sued, complaining the new rule would increase government costs in their states by $115 million next year alone and would put private employers on the hook for millions of dollars more, possibly leading to layoffs.