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A federal judge in Texas has granted a preliminary injunction to halt the implementation of the U.S. Labor Department's new overtime rule for the state of Texas, which was set to go into effect on July 1. The rule, aimed at expanding overtime pay eligibility to 4 million workers nationwide, was challenged by Texas, which argued that compliance costs would strain the state budget and lead to job cuts and reduced state services. Judge Sean D. Jordan of the U.S. District Court for the Eastern District of Texas ruled in favor of Texas, citing potential irreparable harm and an imbalance of equities against the rule. The decision temporarily prevents the rule from affecting Texas state employees, although its broader implications for other states and businesses remain uncertain. The new rule intended to raise the salary threshold for overtime eligibility from $35,568 to $43,888 initially, with a further increase to $58,656 by January 1, 2025. The state estimated that fewer than 100 employees would be impacted by the change. The case has been consolidated with a similar challenge from business groups in the Eastern District of Texas.