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HR Policy Requests DOL Pause Overtime Rule Implementation

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Authors: Chatrane Birbal

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The HR Policy Association joined others in the business community to request that the Department of Labor pause the implementation of the new overtime final rule. This request is being made while ongoing legal challenges against the rule are resolved. As our letter points out, “During President Biden’s term in office, several agencies have already exercised this authority while litigation was pending over their rules, including the Federal Trade Commission’s CARS Rule, the Securities and Exchange Commission’s Climate Disclosure Rule, and the National Labor Relations Board’s Joint Employer Final Rule.” 

Why it matters: With several court cases pending, postponing the rule’s July 1 effective date would spare companies the cost of complying with a rule that could be invalidated by a court and avoid negative impacts on employees. As our letter highlights, “[Changes to employee classification] 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.”   

Our latest request is distinct from a recent letter we sent to the DOL requesting delay of the implementation date for the first increase in the minimum salary threshold until at least September 1, 2024. 

Congressional republicans pursue CRA: While the HR Policy Association continues to advocate for a pause in implementation, congressional allies are pursuing a more direct challenge to the rule's validity with Representative Tim Walberg (R-MI) and Senator Mike Braun (R-IN) introducing a Congressional Review Act (CRA) challenge aimed at nullifying the overtime rule.

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