On May 15, the Department of Labor (DOL)’s Wage and Hour Division issued a final rule to rescind the Biden administration’s 2024 overtime rule and replace it with the 2019 rule that is currently being enforced. The rule clarifies that it implements federal court judgments that vacated the 2024 rule.
Earlier in May, the DOL filed a joint stipulation in one of the pending appeals before the 5th U.S. Circuit Court of Appeals, formally abandoning its legal defense of the 2024 overtime final rule. The Trump administration’s DOL had previously filed an appeal in the Flint Avenue, LLC v. U.S. Department of Labor case, though it appeared to serve mainly as a placeholder while the Trump administration determined how to proceed. Shortly after it was filed, the 5th Circuit stayed the Flint Avenue appeal while the DOL reconsidered its policy position.
The new rule to rescind the 2024 overtime rule does not change any enforcement actions. The 2019 overtime rule and salary thresholds have been in effect since federal courts vacated the 2024 rule. The new rule does not indicate whether the DOL will move forward with an update to the salary threshold in the near future.
CUPA-HR will continue to monitor for updates related to the Fair Labor Standards Act overtime regulations.