What Will Happen to the DOL Final Overtime Rule With the New Administration?

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IPC continues to address issues with the Department of Labor (DOL) final overtime rule on its own and by working with the Partnership to Protect Workplace Opportunity—the coalition of companies and associations from many different industries. IPC’s significant concerns with the final rule are that it neglects to consider regional pay differences, wage compression on other exempt classifications, and a modern work environment in which many employees prioritize flexible work schedules. Recently, there have been some new developments that IPC would like to share with its membership. 

As IPC recently reported, the DOL final overtime rule was blocked by District Judge Amos Mazzant’s preliminary injunction (PI). Since then, the Federal Government filed an appeal and requested a motion for expedited consideration, which was granted. Given all of this, the briefs will last until January 31, 2017. Oral arguments will then follow as will a decision. However, this part will take place under the new Trump Administration and it will have to decide if it wants to continue the appeal. 

At this time, there is no sign as to whether the Trump Administration will do this or pursue another regulation, but Secretary of Labor nominee Andrew Puzder has spoken out strongly against the Obama Administration overtime regulation. This will be one of the first items with which it will have to deal. If the Trump Administration decides not to continue with the appeal, it is possible that another party could. The most likely case is the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), which plans to petition to intervene in the case at the District Court level. If granted by the judge, the PI and arguments would remain, but the AFL-CIO could continue with the appeal and it would continue to a final resolution. However, if no other party is granted intervenor status, and the government declines to pursue the appeal, then the injunction would stand and the regulation would remain blocked. If the regulation is permanently enjoined, then the next question faced by the new administration would be whether to pursue a revised overtime regulation. 

IPC is sending a letter to Labor Secretary-Designee, Andrew Puzder. The letter outlines IPC’s concerns with the DOL final overtime rule and urges that the rule be overturned or, at a minimum, modified. Stay tuned for additional updates on this issue as it progresses. However, any new changes in the status of the DOL final overtime rule will take at least until February, but quite possibly a bit later.