Trump Administration Announces Two Regulatory Changes

Proposed Rule Change to Overtime Regulations

On November 4, 2019, The U.S. Department of Labor announced a proposed rule to change regulations for computing overtime compensation for salaried nonexempt employees who work hours that vary each week and whose employers pay them under the fluctuating workweek provision in the Fair Labor Standards Act (FLSA).

The proposed rule makes clear that bonus and premium payments, in addition to the fixed salary, will be allowable when employers use the fluctuating workweek method of compensation. The supplement bonus and premium payments must be included in the calculation of the regular rate as appropriate under the FLSA.

This notice of proposed rulemaking is available for review and public comment until December 5, 2019, at 11:59 p.m.

There are two ways to submit comments, and the instructions indicate you should choose only one of the two ways:

  • Use the Federal eRulemaking Portal at https://www.regulations.gov.Follow the instructions for submitting comments.
  • If you wish to mail comments, address written submissions to Division of Regulations, Legislation, and Interpretation, Wage and Hour Division (WHD), U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW, Washington, DC 20210.

All submissions must include the agency name and RIN, in this case, 1235-AA31, for this rulemaking.

If you submit a comment, you should understand and expect that the comment will become a matter of public record and posted without change to http://www.regulations.gov.

Revocation of Obama Executive Order

On January 30, 2009, President Obama issued Executive Order 13495: “Nondisplacement of Qualified Workers Under Service Contracts.” It required successor federal contractors to offer a right of first refusal in jobs to the employees of the predecessor contractor, in certain circumstances.

On Thursday, October 31, 2019, President Donald J. Trump issued an “Executive Order on Improving Federal Contractor Operations by Revoking Executive Order 13495.” This order revokes that Executive order issued by President Obama, and federal contractors now can hire with no obligation to offer employment to the predecessors’ employees.

Under the new Executive order, the Secretary of Labor must immediately terminate any investigations or compliance actions arising from Obama’s original Executive Order 13495, and government contractors who were in violation presumably will not be barred from future federal contracts for up to three years.