White House “Regulatory freeze” Directive Pauses most Federal Rulemaking
As expected, the White House issued a directive to the heads of all executive departments and agencies within the first few hours after President Trump’s inauguration on January 20, requesting that they halt all non-emergency rulemaking and regulatory activity pending review by the new administration.
The order directs the executive agencies, which include the U.S. Department of Labor (DOL), to immediately:
- propose or issue no rule in any manner until a department or agency head appointed or designated by President Trump reviews and approves the rule;
- immediately withdraw any rules that have already been sent to the Office of the Federal Register (OFR) for publication but that have not yet been published; and
- consider postponing by 60 days the effective date of any such rules already sent to OFR for publication (or otherwise issued) but which have not yet taken effect, “for the purpose of reviewing any questions of fact, law, and policy the rules may raise.”
The Director or Acting Director of the Office of Management and Budget may exempt any rule deemed necessary to address “emergency situations or other urgent circumstances.”
Unlike four years ago, when the lame-duck Trump DOL’s paradigm-shifting Final Rule on independent contractor classification was scheduled to take effect weeks after Inauguration Day, no federal wage and hour rules impacting private employers are awaiting an effective date in the near future. The DOL Wage and Hour Division has been working on a single rule, which is to phase out the issuance certificates that allow employers to pay subminimum wage to certain workers with disabilities. This rule is based on section 14(c), of the Fair Labor Standards Act. The proposed rule would give employers who currently hold such certificates up to three (3) years to transition from paying subminimum wages to workers impacted. We wouldn’t rule out the rule forever, as there is a long tradition of bipartisanship in disability rights issues. This rule is being written that way. The original 1938 FLSA text included Section 14(c) to provide job opportunities for workers with disabilities who would otherwise have limited earning capacity. Opponents of the certificate program argue it promotes the suppression of wages for disabled workers who wouldn’t otherwise be shut out of the American workforce.
Proskauer’s Wage and Hour Group is comprised of seasoned litigators who regularly advise the world’s leading companies to help them avoid, minimize, and manage exposure to wage and hour-related risk. Subscribe to our wage and hour blog to stay current on the latest developments.
