ASA Urges Delaying the Overtime Rule

ASA, along with the Partnership to Protect Workplace Opportunity (PPWO), requests that the Wage and Hour Division (WHD) stay the effective date of its overtime final rule published in the Federal Register on April 26, 2024, (89 FR 32842) to allow for judicial review, as the rule is currently being challenged in two federal courts. The U.S. Court of Appeals for the Fifth Circuit is considering the Department of Labor’s (DOL) statutory authority to implement a minimum salary threshold related to the overtime pay requirements under the Fair Labor Standards Act, while a lawsuit filed on May 22, 2024, before the U.S. District Court for the Eastern District of Texas is challenging the legality of the substantial increase to the minimum salary threshold included in the final rule as well as the rule’s triennial automatic updates to the threshold.  The Biden administration has already delayed implementation of several final rules pending legal challenges, so there is precedent for this action.

A stay of the overtime rule would protect workers whose terms and conditions of employment may be negatively impacted by the policy changes within the rule. Many workers will be reclassified if the final rule goes into effect, resulting in them losing workplace status, access to benefits, flexible work arrangements, or career development opportunities. These changes should not be made lightly, as the resulting low employee morale and/or decrease in productivity cannot easily be recovered if the rule is eventually invalidated by the courts.   Finally, this week, Rep. Walberg (R-MI) and Sen. Braun (R-IN) introduced a Congressional Review Act (CRA) challenge to nullify the overtime rule.