In its Fall 2022 Regulatory Agenda, the US Department of Labor (DOL) announced its intention to release updated overtime rules in May 2023. As that deadline has come and gone, DOL has announced a new release date, but that deadline too may be a moving target. In its Spring 2023 Regulatory Agenda, DOL 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 US Labor Secretary Marty Walsh combined with a lawsuit challenging DOL’s ability to establish a salary threshold as part of its regulatory authority, could cause further delays. Acting US 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 for more updates on the Checkwriters News and Compliance Center!