Lawyers expect second Trump administration to bring changes to labor law - ColoradoBiz
Labor and employment attorneys are bracing for shifts in federal workplace policy as recent court decisions and a second incoming Trump administration promise to reshape key areas of practice.
From overtime rules to noncompete agreements, practitioners will have to navigate an increasingly complex landscape while preparing their clients for potential changes in labor law enforcement and priorities.
OT salary threshold
The invalidation of the Department of Labor’s overtime salary threshold rule by the U.S. District Court for the Eastern District of Texas in November has left employment attorneys managing uncertain client compliance strategies.
The rule, which had already implemented its first-phase increase to $43,888 in July, was set to reach $58,656 in January, before it was vacated nationwide.
James R. O’Connor of Phillips Lytle in New York expects the incoming administration to either withdraw any pending appeals or pause them while developing new regulations.
“If the decision is appealed before the new administration takes the helm, I expect the new Department of Labor to eventually withdraw that appeal or request a stay until new rules can be passed to either undo or change the Biden administration’s regulations,” O’Connor said.
Instead, he sees potential for alternative approaches to overtime compensation.
“There could be an opportunity for the new administration to amend the [Fair Labor Standards Act] to allow overtime-eligible workers...
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