Update: Overtime Rule

The U.S. Department of Labor has included an update to overtime pay eligibility in its “long term action” regulatory agenda, indicating that the Trump administration does not intend to address this rule in the near future.  The DOL re-released its Spring 2025 regulatory agenda last Thursday, after previously publishing and removing it from the Office of Management and Budget website in August. The decision to defer updates to the so-called “white collar” overtime exemption follows multiple ongoing lawsuits regarding a Biden-era overtime rule currently pending in federal court. Two federal courts struck down the rule last year, which would have extended overtime protections to an additional four million workers. These matters are under review by the U.S. Court of Appeals for the Fifth Circuit. Another lawsuit challenging the rule, filed in the U.S. District Court for the District of Columbia by a Christian school association, has been stayed while the DOL considers rewriting the regulation.  Within the regulatory agenda, the Trump administration stated that it is “reviewing the 2024 rule and determining how to proceed,” but did not specify a timeline for introducing a new proposal.