In its Fall 2022 Regulatory Agenda, the Department of Labor announced its intention to release updated overtime rules in May 2023. To read details about those updated overtime rules, please see our previous article: Coming Soon – New DOL Overtime Rules.
As that deadline has come and gone, the DOL has announced a new release date, but that deadline too may be a moving target. In its Spring 2023 Regulatory Agenda, the Department of Labor again announced that it is reviewing the regulations defining and delimiting the bona fide executive, administrative and professional exemptions from the Fair Labor Standards Act’s minimum wage and overtime requirements.
The agenda has proposed a new timetable for issuance of a Notice of Proposed Rulemaking slated for August 2023. However, delays in replacement of former U.S. Labor Secretary Marty Walsh combined with a lawsuit challenging the Department of Labor’s ability to establish a salary threshold as part of its regulatory authority, could cause further delays.
Acting U.S. Labor Security Julie Su has been formally nominated by President Biden as Walsh’s replacement, but faces significant opposition from Republicans based on her involvement with California’s controversial AB 5, which significantly expanded employee classification to large groups of gig workers in California.
The lawsuit challenging the Department of Labor’s regulatory authority to establish a salary threshold was filed by a fast-food chain operator named Robert Mayfield in Austin, Texas in 2022. The case is currently pending before Judge Robert Pitman in the U.S. District Court for the Western District of Texas, with motions for summary judgment filed by both parties as of March 2023. Judge Pitman has not issued a decision on both parties’ requests for summary judgment or whether the case will proceed to trial.
Employers stay tuned.
Disclaimer: The information contained herein is not intended to be construed as legal advice, nor should it be relied on as such. Employers should closely monitor the rules and regulations specific to their jurisdiction(s) and should seek advice from counsel relative to their rights and responsibilities.