The federal appeals court based in Denver has temporarily blocked the Biden administration’s directive requiring a minimum hourly wage of $15 for outdoor recreation companies operating on public lands.

The rule from the U.S. Department of Labor took effect on Jan. 30 and requires organizations with federal contracts or “contract-like” agreements to pay their workers $15 hourly and $22.50 for overtime. Duke Bradford, the owner of Arkansas Valley Adventures, sued over the policy, arguing President Joe Biden had exceeded his legal authority to issue the executive order that led to the rule.

Last month, U.S. District Court Chief Judge Philip A. Brimmer refused to issue an injunction. Brimmer found presidents have broad authority to set policy for services supplied through the government. Because Bradford’s company had permits from the government to operate river rafting tours on federal land, it qualified under the order as a “contract-like” arrangement for services.

“President Obama and President Trump invoked the Procurement Act as the proper vehicle for the Executive to regulate minimum wages paid to federal contractors, including outfitters and guides operating on federal land,” wrote Brimmer in a Jan. 24 order. “President Obama’s and President Trump’s executive orders and rules are historical precedent for President Biden.”

Now, two judges for U.S. Court of Appeals for the 10th Circuit have granted Bradford’s request for a preliminary injunction as his case awaits a hearing on appeal. Senior Judge Paul J. Kelly Jr. and Judge Gregory A. Phillips blocked the enforcement of the minimum wage rule for contracts beginning or renewed after Jan. 30. The injunction applies only to seasonal recreation or equipment rental services operating on public lands.

Bradford’s company operates along the Colorado and Eagle rivers, and one of his permits will be up for renewal on March 30. He testified to Brimmer that the wage requirements will affect his operation financially, and he expected to halt overnight trips and limit his seasonal guides to a 40-hour workweek.

Biden’s executive order from April 2021 setting the minimum wage for federal contractors rescinded a Trump administration order that exempted seasonal recreation services from the wage standards established by Trump’s predecessor, Barack Obama.

The outdoor recreation industry adds almost $10 billion to Colorado’s economy and employs 119,000 people, according to the U.S. Bureau of Economic Analysis.

The case is Bradford et al. v. U.S. Department of Labor et al.