What's Happening?
The U.S. Department of Labor (DOL) announced its intention to revisit overtime regulations under the Fair Labor Standards Act, although no specific timeline has been provided. The announcement follows the publication of the Spring 2025 regulatory agenda, which includes proposed rules on joint-employer and worker classification standards. The DOL is reviewing the Biden administration's 2024 overtime rule, which was vacated by a federal judge, and is considering how to proceed. The Trump administration has appealed the court decisions to the 5th U.S. Circuit Court of Appeals, with cases still in litigation.
Why It's Important?
Revising overtime regulations could significantly impact employers and employees across the U.S. The potential changes aim to modernize outdated rules, reduce burdens on employers, and enhance economic opportunity. Employers may face adjustments in compliance requirements, while employees could benefit from clearer and potentially expanded overtime pay eligibility. The ongoing litigation and regulatory updates underscore the complexity of labor policy and its implications for economic growth and worker rights.
What's Next?
The DOL's next steps on overtime pay eligibility remain undetermined, with further actions pending the outcome of litigation and regulatory evaluations. Stakeholders, including employers and labor advocates, are likely to closely monitor developments and prepare for potential changes in labor policy. The DOL's agenda also includes future rulemaking on investment advice fiduciary rules, with a target date set for May 2026.
