WAGE AND HOUR
LEADERSHIP CHANGES SIGNAL SHIFT IN WAGE AND HOUR FOCUS Lori Chavez-DeRemer — who took the reins as Secretary of Labor on March 11 — has promised to “work with business and labor to support good-paying jobs, grow our economy, and ensure every American can enjoy a comfortable retirement.” While her initial nomination was surprising due to her support of pro-union initiatives like the PRO Act, Chavez-DeRemer later called the act “imperfect” and emphasized her commitment to supporting President Trump’s agenda, including “eliminating burdensome regulations” and “putting American workers first.” Read more about Lori Chavez-DeRemer’s appointment here.
TRUMP SHARES PRIORITIES IMPACTING LABOR DEPARTMENT President Trump has said his goals for the DOL include creating more opportunities for American Workers, expanding training and apprenticeships, growing wages, improving working conditions, and bringing back manufacturing jobs.
Predictions for Next 100 Days... and Beyond
• Employers may have some critical decisions to make on how to move forward with compensation plans. The salary threshold for the Fair Labor Standards Act’s (FLSA’s) white- collar exemptions will remain just above $35k for now (after a federal court halted the Biden administration’s increase). However, we anticipate that the DOL will take steps to modestly increase the salary threshold (as it did during the first Trump administration). • We also expect the DOL to drop a Biden-era independent contractor standard and return to the more lenient rule issued during Trump’s first term. You can read more about this issue here. • Similarly, we think the DOL will shift back to a more employer- friendly joint employer standard. During the first Trump administration, the DOL attempted to shield businesses from being considered joint employers in a wide spectrum of circumstances, but that rule was blocked by the courts. • We would not be surprised to see a push for an increase to the $7.25/hour federal minimum wage. Of course, Congress would need to carry out such a wage hike through legislation before Trump’s approval. • As the federal government eases enforcement efforts, we expect more activity at the state and local level, both in terms of enforcement and audit activity. We also expect the plaintiffs’ bar to file more private cases, including litigation under state wage and hour and wage payment statutes.
Kathleen McLeod Caminiti Partner and Co-Chair, Wage and Hour Practice Group New Jersey / New York kcaminiti@fisherphillips.com
J. Hagood Tighe Partner and Co-Chair, Wage and Hour Practice Group Columbia htighe@fisherphillips.com
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