A federal judge has blocked an Obama administration rule that would have expanded overtime eligibility to some 4 million U.S. workers, handing many business groups a legal victory that could ultimately derail the White House effort.

More than 50 state and national business groups sued the U.S. Department of Labor in September to block the rule, which would raise the salary threshold to qualify for overtime pay from $455 to $913 a week. The change was scheduled to take place Dec. 1.

U.S. District Judge Amos Mazzant of Texas sided with the plaintiffs Tuesday in their request for a preliminary injunction to keep the rule from going into effect. The case will drag on into the Trump administration, and many prominent Republicans have spoken out against expanding overtime. Political observers believe the rule will be among the first Obama administration rules the incoming president and Congress abandon once taking office.

Several business groups are certainly hoping that will be the case.

"The rules are just plain bad public policy, and we are pleased that the judge is allowing time for the case to go forward before they can go into effect." said David French, senior vice president for government relations at the National Retail Federation. "We hope the judge ultimately finds in our favor, and in the meantime this timeout gives Congress a chance to take another look at the impact of these rules."

International Franchise Association CEO Robert Cresanti said the judge's decision "is a serious and significant victory for the rule of law."

"While a modest increase in the overtime threshold would have been appropriate, many franchises were faced with difficult and costly decisions about how to reclassify their greatest assets—their employees," he said.

The financial services sector was also ecstatic about the decision.

"This is a welcome delay for many small businesses, especially credit unions, that would not have been able to integrate this immense increase without impacting the services they provide," said Carrie Hunt, executive vice president of government affairs and general counsel for the National Association of Federal Credit Unions.

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