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Regulatory Rundown | Nov. 4-18
Federal judge strikes down DOL overtime rule. On Nov. 15, the U.S. District Court for the Eastern District of Texas struck down the Biden Department of Labor’s (DOL) overtime rule, citing an overextension of DOL authority.
Issued earlier this year, the rule adjusted the test used to determine whether a worker should be subject to an exemption to overtime pay requirements, updating the salary portion of the test so that workers making less than $58,656 a year would be automatically eligible for overtime pay any time they worked more than 40 hours a week. The rule would also update the salary threshold every three years.
The decision to block the rule comes weeks before the next implementation date.
Read more here.
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DOL kicks off National Apprenticeship Week. On Nov. 17, DOL announced the start of National Apprenticeship Week, which will run through Nov. 23. Held annually, the event showcases the benefits of Registered Apprenticeship.
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DOL, Commerce release skills-first hiring guide. On Nov. 13, DOL published a guide “designed to educate employers about the benefits of using skills-first hiring practices and encourage them to use those practices to build a better, more qualified workforce.”
The Skills-First Hiring Starter Kit, developed in partnership with the Commerce Department, provides hiring, promotion, and management guidelines “built around worker skills, rather than relying on degree qualifications.”
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OSHA says rate of recordable workplaces injuries and illnesses fell to lowest level since 2023. On Nov. 8, DOL’s Assistant Secretary for Occupational Safety and Health Douglas Parker issued a statement revealing that “the rate of recordable workplace injuries and illnesses in 2023,” per the Bureau of Labor Statistics’ 2023 Survey of Occupational Injuries and Illnesses, “fell to its lowest level going back to 2003.”
Parker cited OSHA’s “formula of strong enforcement combined with collaboration between government, labor, and the private sector” as reasons for the decline. His statement comes days after OSHA similarly touted that “[f]ewer workers are dying from hazards” where the administration “has focused its enforcement resources.”
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DOL announces guidance for employee benefit plans impacted by recent hurricanes. On Nov. 7, DOL, alongside the Treasury Department and IRS, issued a joint notice “extending certain time frames for participants and beneficiaries to exercise their rights to healthcare coverage, and continuation of group health plan coverage under COBRA” applicable to participants and beneficiaries and employee benefit plans affected by Hurricanes Helene and Milton.
As part of these relief efforts, DOL also extended certain deadlines for plan officials in areas disrupted by the storms “provided they make a good faith effort to issue them as soon as administratively practicable.”
More information on the deadlines extension is available here, and a set of FAQs on health and retirement benefit issues for those impacted by the storms is available here.
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SBA announces single-year record for federal contracting certifications for FY24. On Nov. 4, the Small Business Administration (SBA) announced “a single-year record for federal contracting certifications for FY24.”
According to SBA, during FY24, SBA certified over 17,000 small businesses, “a nearly 40 percent increase over FY23, across its certification programs for women, veterans, socially and economically disadvantaged businesses, and HUBZones.”
SBA also announced that its new online platform, MySBA Certifications, is live and accepting applications.
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FTC takes action against bogus scheme targeted at small business. On Nov. 15, the Federal Trade Commission (FTC) announced it is taking action against Seek Capital and founder and CEO Roy Ferman “for operating a bogues business finance scheme that cost small business owners more than $37 million.”
Per the FTC-filed complaint, Seek Capital’s advertising implied that business owners would have access to cash, while the company instead charged clients “thousands of dollars simply to open credit cards in the targeted small business owners’ names.”
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NLRB rules captive-audience meetings unlawful. On Nov. 13, the National Labor Relations Board (NLRB) issued a decision ruling that “requiring employees under threat of discipline or discharge to attend meetings in which the employer expresses its views on unionization” (captive-audience meetings) violates the National Labor Relations Act.
In its ruling, NLRB clarified that an employer “may lawfully hold meetings with workers to express its views on unionization so long as workers are provided reasonable advance notice of” the subject of such meeting, that attendance is voluntary with no adverse consequences for lack of attendance, and that no attendance records of such meeting will be kept. The full text of the decision is available here.
