In a possible attempt to implement new rules before they can be rescinded by a Democratic Congress and administration, the Department of Labor recently finalized regulations regarding wage and hour issues and the Labor Secretary’s power to review administrative decisions. These administrative moves are the result of a little-known but important statute aimed at curbing midnight rulemaking by outgoing administrations. The Congressional Review Act (“CRA”) establishes special congressional procedures for disapproving a broad range of regulatory rules issued by federal agencies. By joint resolution, Congress can approve or disapprove of a regulation, which then goes to the President to sign or veto. If Congress adjourns its annual session less than 60 “legislative days” in the House of Representatives or 60 “session days” in the Senate after a rule is submitted to it, the rule is carried over to the next session of Congress and subject to possible disapproval during that session. While it is difficult to calculate the CRA deadline—particularly given COVID-19’s impact on Congress’ schedule—if the Trump administration fails to finalize the rules before the CRA deadline and Republicans lose control of the White House and Senate, a Democratic-controlled Congress could successfully rescind the rules under the CRA. READ MORE
On Tuesday, the President officially killed the Obama-era Fair Pay and Safe Workplaces (“FPSW”) Initiative, which came to be known as the “Blacklisting regs”. The move was widely expected as Executive Order 13673, the Federal Acquisition Council’s Regulations and the Department of Labor’s Guidance were widely panned by federal contractors. However, the Trump Administration’s path to dump this initiative represents how Washington makes it difficult to do even the simplest things quickly. READ MORE
The U.S. Department of Labor (DOL) sent its much anticipated final overtime regulations to the Office of Management and Budget (OMB) for review on March 14, 2016. Technically, this move came slightly ahead of schedule. OMB now has 90 days to review, which would put its “due date” in mid-June – ahead of the July regulatory agenda publication date we previously reported. However, as these overtime regulations are a top-line priority subject to intense political scrutiny, there is reason to believe OMB may not complete its review within the 90-day window.
The U.S. Department of Labor’s (“DOL”) role as a strong player in the Obama Administration’s domestic agenda shows no signs of letting up. DOL is poised to finalize big changes in the federal contracting and wage and hour spaces. Employers should be ready to meet the compliance challenges associated with these new obligations.