{"id":8007,"date":"2024-11-13T13:52:48","date_gmt":"2024-11-13T18:52:48","guid":{"rendered":"https:\/\/employerdefensereport.com\/?p=8007"},"modified":"2026-03-20T11:57:37","modified_gmt":"2026-03-20T15:57:37","slug":"trump-2-0-u-s-dol-wage-and-hour-division-priorities-rulemaking-rollbacks-and-a-reduced-focus-on-vulnerable-workers","status":"publish","type":"post","link":"https:\/\/www.connmaciel.com\/employer-defense-report\/trump-2-0-u-s-dol-wage-and-hour-division-priorities-rulemaking-rollbacks-and-a-reduced-focus-on-vulnerable-workers\/","title":{"rendered":"Trump 2.0 U.S. DOL Wage and Hour Division Priorities: Rulemaking Rollbacks and a Reduced Focus on \u201cVulnerable\u201d Workers"},"content":{"rendered":"

By Scott Hecker<\/a> and Kara Maciel<\/a><\/em><\/p>\n

With the 2024 election behind us, the Labor & Employment Team<\/a> at Conn Maciel Carey, drawing on its members\u2019 breadth of experience representing employers under both Republican and Democratic administrations, provides this initial forecast on what may change with respect to Department of Labor wage hour enforcement, compliance assistance, and rulemaking under a second Trump Administration.<\/p>\n

Outlook for the Overtime Exemption Rule
\n<\/u><\/em><\/strong><\/p>\n

How the Trump Administration approaches President Biden\u2019s overtime exemption regulation<\/a>\"Adobestock<\/a> will have immediate consequences for employers.\u00a0 In fact, the rule\u2019s second salary threshold increase currently goes into effect on January 1, 2025, so depending on whether and how court contests resolve, employers may have pre-inauguration obligations.<\/p>\n

Texas and business groups are battling the overtime rule in consolidated cases venued in the Eastern District of Texas.\u00a0 U.S. District Judge Sean D. Jordan on November 8, 2024 held oral argument on the parties\u2019 competing motions for summary judgment, so he may decide soon whether to expand the preliminary injunction he previously issued enjoining the Wage and Hour Division from enforcing the regulation against Texas as an employer.\u00a0 If the rule remains, employers will need to ring in the New Year by paying exempt workers a weekly salary of $1,128 and an annual salary of $58,656 \u2013 as well as continuing to meet the duties portions of the rule.<\/p>\n

Recently, in Mayfield v. U.S. Department of Labor<\/em>, the U.S. Court of Appeals for the Fifth Circuit upheld DOL\u2019s authority to include a salary threshold in its overtime exemption rule.\u00a0 However, the Fifth Circuit included the caveat that if \u201cthe proxy characteristic frequently yields different results than the characteristic Congress initially chose, then use of the proxy is not so much defining and delimiting the original statutory terms as replacing them.\u201d\u00a0 Mayfield <\/em>addressed the Trump era overtime exemption rule, which included a lower salary threshold than Biden\u2019s iteration, so the Fifth Circuit\u2019s decision could provide support for a second Trump Administration reviving its version of the rule, even if Judge Jordan invalidates one or both Biden threshold increases.<\/p>\n

Other Rulemakings and Regulatory Challenges<\/u><\/em><\/strong><\/p>\n

As noted in our contemporaneous OSHA Defense Report post<\/a>, President Trump reassumes office toting a friendly Congress armed with the Congressional Review Act and recent Supreme Court decisions Loper Bright<\/em><\/a>, Jarkesy<\/em><\/a>, and Corner Post<\/em><\/a> decreasing the scope and power of the administrative state.\u00a0 We expect less rulemaking activity under Trump 2.0, as he has stated \u2013 and previously executed on \u2013 the goals to reduce regulatory requirements and rein in agency action.<\/p>\n

Coupled with fewer proactive rulemakings, as noted above, existing wage and hour regulations promulgated by the Biden Administration already face legal challenges.\u00a0 In addition to the overtime exemption litigation, business interests have challenged the Wage and Hour Division\u2019s independent contractor classifications rule \u2013 which also replaced a Trump era regulation.\u00a0 As with the overtime regulation, Trump 2.0 could look to reinstate its independent contractor rule.\u00a0 President Trump\u2019s independent contractor standard was lauded by industry for its clarity, as it focused on two \u201ccore factors\u201d: control over the work and opportunity for profit or loss.\u00a0 Biden\u2019s rule focused on at least six economic reality criteria, which critics suggest muddy the waters of the classification analysis.\u00a0 Reimplementing the core factors test could provide a relatively easy win for the returning administration in working toward a more employer-friendly compliance environment.<\/p>\n

Other relatively recent regulations concerning Davis-Bacon Act prevailing wage requirements for federally-funded construction projects and implementing President Biden\u2019s executive order setting a minimum wage for employees working on covered government contracts have uncertain futures under Trump\u2019s second administration as well.<\/p>\n

Resources and Enforcement<\/u><\/em><\/strong><\/p>\n

During President Trump\u2019s first administration, the number of investigators hit historical lows.\u00a0 Those numbers, and the low morale resulting from them, never fully rebounded during President Biden\u2019s term.\u00a0 It remains to be seen how new initiatives, like Elon Musk and Vivek Ramaswamy\u2019s \u201cDepartment of Government Efficiency<\/a>,\u201d will impact the Department of Labor and other agencies.\u00a0 But Trump projects such as the PAID program<\/a> \u2013 which the Biden Administration immediately killed<\/a> \u2013 demonstrated a departmental focus on employer assistance, with a goal of more efficient resolutions to wage claims.<\/p>\n

Enforcement continued under President Trump, albeit at a reduced level and arguably with more control of regional personnel from the Administrator\u2019s Office in DOL\u2019s DC headquarters.\u00a0 Bad actors may have remained at high risk of enforcement activity \u2013 or at least on the receiving end of tough talk \u2013 but the overall environment was more employer friendly than the current Administration\u2019s has been.\u00a0 Employer representatives regularly visited the Wage and Hour Division\u2019s offices to discuss issues important to their clients; that\u2019s not to say employers lacked a voice during the Biden Administration, but the primary motivator was to amplify worker voices, and not always to consider business perspectives.<\/p>\n

Workers, particularly those identified as \u201cvulnerable,\u201d are a stated focus of President Biden\u2019s Department of Labor.\u00a0 He has repeatedly pledged to be the most Labor-friendly president in history.\u00a0 The intent of revising the Wage and Hour Division\u2019s overtime exemption rules, changing the way workers might be classified as independent contractors, updating the Davis-Bacon Act, proliferating anti-discrimination language in regulations, and setting a higher minimum wage for government contractor employees under the Biden Administration was to improve the lives of workers.<\/p>\n

The success of these activities may be debated, but the purpose was clear.\u00a0 With the advent of a second Trump Administration, workers \u2013 and employers \u2013 should expect less public focus on these workers, with possible exceptions in circumstances where wage hour concerns overlap with human trafficking or immigration issues.\u00a0 The \u201claw and order\u201d approach traditionally adopted by Republican administrations could lead to an increased focus on bad actors, balanced against more compliance assistance for employers working in good faith to follow relevant laws and regulations.<\/p>\n

State Activities<\/u><\/em><\/strong><\/p>\n

The Department of Labor\u2019s agencies will continue their enforcement activities at the federal level, but with shifted priorities and more limited resources.\u00a0 So, where the federal executive and legislative branches demonstrate less interest in acting, we can expect states to address issues like minimum wage, child labor, and paid leave.\u00a0 We\u2019ve seen tension in these areas, and we can expect these dichotomous approaches to persist during President Trump\u2019s second administration.\u00a0 For example, several states with Republican governors have demonstrated an interest in loosening child labor restrictions to add minor employees to the workforce, asserting such opportunities allow younger workers to develop employment and other life skills.\u00a0 This approach is likely to align with Trump 2.0\u2019s relaxed enforcement landscape.<\/p>\n

On the other hand, states with Democratic leadership could pursue the aggressive enforcement approach exemplified by President Biden\u2019s Wage and Hour Division.\u00a0 California Governor Gavin Newsom has called for<\/a> a special December session of the California legislature designed to \u201cTrump-proof\u201d the State, and we can expect those efforts to include wage and hour protections.<\/p>\n

The upshot: multi-jurisdictional employers must remain aware of developments at the federal and state levels because a state-by-state lawmaking approach will result in a patchwork of compliance obligations, with deepening differences among wage and hour requirements.<\/p>\n

Please connect with the author or your friendly neighborhood Conn Maciel Carey attorney<\/a> for further information on these and other labor & employment<\/a> and workplace safety issues<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Scott Hecker and Kara Maciel With the 2024 election behind us, the Labor & Employment Team at Conn Maciel Carey, drawing on its members\u2019 breadth of experience representing employers under both Republican and Democratic administrations, provides…<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[813],"tags":[909,832,908],"class_list":["post-8007","post","type-post","status-publish","format-standard","hentry","category-wage-hour-compliance","tag-agency-investigations-audits","tag-independent-contractor-gig-economy","tag-pay-practices"],"acf":[],"yoast_head":"\nTrump 2.0 U.S. DOL Wage and Hour Division Priorities: Rulemaking Rollbacks and a Reduced Focus on \u201cVulnerable\u201d Workers - Employer Defense Report<\/title>\n<meta name=\"robots\" content=\"index, follow, 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