Joint Trade Letter Urging DOL to Stay Implementation of Overtime Rule

Dear Administrator Looman:

The Partnership to Protect Workplace Opportunity (PPWO) and the 95 undersigned organizations request the Wage and Hour Division (WHD) stay the effective date of its final overtime rule (89 FR 32842) published in the Federal Register on April 26, 2024, to allow for judicial review, as there are currently several cases that could impact the validity of the new rule. The final rule is currently set to go into effect on July 1, 2024.

PPWO is a coalition of a diverse group of associations, businesses, and other stakeholders representing employers with millions of employees across the country in almost every industry. Formed in 2014, the Partnership is dedicated to advocating for the interests of its members in the regulatory debate on changes to the Fair Labor Standards Act overtime regulations. PPWO's members believe that employees and employers alike are best served with a system that promotes maximum flexibility in structuring employee hours, career advancement opportunities for employees, and clarity for employers when classifying employees.

The Administrative Procedure Act permits agencies to "postpone the effective date of action taken by it, pending judicial review" when "justice so requires." 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.

Postponing the effective date of a rulemaking while litigation is pending ensures that impacted businesses and the agency itself do not waste valuable resources by attempting to come into compliance or implement a rule that could be invalidated by a court. For example, if the overtime rule is implemented, it will trigger significant costs for the employer community, but these costs can be avoided if a stay is granted by the Department of Labor and the courts eventually invalidate the rule.

Download the joint comment letter to read the full text.