Situational Awareness
The House and Senate are both in session this week. The House is slated to vote on its version of the Federal Aviation Administration reauthorization package and legislation that restricts undocumented immigrants from being sheltered in public education facilities. The Senate will hold a floor vote on its version of the National Defense Authorization Act.
Overtime Proposed Rule Moving
The White House Office of Information and Regulatory Affairs (OIRA) has officially received a proposal from the Department of Labor’s (DOL) Wage and Hour Division (WHD) to expand the number of workers eligible for overtime. The Biden administration is expected to raise the salary threshold of the overtime test, which would result in higher payroll costs for employers. We are not expecting significant, if any, changes to the duties test to determine exempt or nonexempt status. The proposal’s details will not be publicly available until it receives approval from OIRA, which is tasked with reviewing drafts of proposed and final regulations. A proposed rule has been expected for some time and NCA has been watching closely for movement on the issue. When the Department of Labor decides to publish the proposed rule, NCA will be sure to notify members. More information will be provided during Thursday’s government relations webcast.
Register for Thursday’s Gov’t Relations Webcast
This Thursday at 2 p.m. ET, Rob Smith, senior vice president, Platinum Advisors and I will host a webcast outlining what’s going on in Washington that might affect member clubs and what club professionals and board members can do to engage. Topics include WOTUS, the proposed overtime threshold expansion and other critical issues. Register here (free to all NCA members).
Appropriations
- On Thursday, the full Senate Appropriations Committee will mark-up its Energy-Water Development spending bill, which includes funding for the U.S. Army Corps of Engineers. The Army Corps is responsible for developing a new Waters of the United States (WOTUS) rule with the EPA, and is a primary investor in projects that bolster ecosystem resilience to climate change.
- This week, the full House Appropriations Committee will consider its Labor-HHS-Education bill. The legislation includes language that prohibits federal funds made available for the Department of Labor (DOL) in FY24 to be used for the administration, implementation or enforcement of the DOL’s proposed independent contractor rule. The final rule is expected in October 2023. The spending bill also includes H-2B regulatory relief provisions that have been in law since 2015, including language that prohibits DOL from enforcing the corresponding employment or the three-fourths guarantee provisions in the 2015 H-2B regulation.
- The House Appropriations Committee released their Interior-Environment spending bill last week. The legislation includes a policy rider that would repeal the Biden Administration’s new definition of waters (WOTUS) protected under the Clean Water Act. Most recently, the U.S. District Court for the Southern District of Texas ordered a stay in litigation between Texas and the Environmental Protection Agency (EPA) that would allow the EPA and Army Corps of Engineers to develop a new WOTUS rule that is consistent with the Supreme Court’s Sackett v. EPA ruling. EPA has indicated they expect to issue an amended final rule by September 1, 2023.