GCCA Joins Letter Urging Delay of Overtime Rule

GCCA joined over 90 organizations led by the Partnership to Protect Workplace Opportunity (PPWO) in requesting the Department of Labor’s Wage and Hour Division (WHD) to stay the effective date of its final overtime rule. The delay would allow time for judicial review, as there are currently several cases that could impact the validity of the new rule.1 The final rule is currently set to go into effect on July 1, 2024.

The letter argues that postponing the effective date of a rulemaking while litigation is pending ensures that impacted businesses and the agency itself do not waste valuable resources by attempting to come into compliance or implement a rule that could be invalidated by a court. For example, if the overtime rule is implemented, it will trigger significant costs for the employer community, but these costs can be avoided if a stay is granted by the Department of Labor and the courts eventually invalidate the rule.