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Get Your Report Now!The nomination of Lori Chavez-DeRemer as Secretary of Labor has raised unexpected questions about the policies of the Department of Labor (DOL) during the incoming Trump administration, especially with respect to the fate of the Biden overtime and independent contractor regulations.
Surprise Nominee
Chavez-DeRemer was a surprise nominee, largely because of her vocal support of unions and workers’ rights. She not only supported the controversial union-favored PRO Act, but she also was one of only three Republicans to co-sponsor the bill. She has also voted to make it easier for public safety workers to collectively bargain.
As the daughter of a Teamster, the Teamsters (and other unions) have publicly supported Chavez-DeRemer’s nomination, and questions circulate about whether the Teamsters will have “their” nominee calling the shots at the DOL. Although she will win easy approval in the Senate, a number of Republican Senators—especially those from the 26 right-to-work states—are expected to seek clarification.
Overtime Test
An early test of Chavez-DeRemer’s pro-union bona fides will come with the department’s response to judicial challenges to its overtime and independent contractor regulations.
The Biden administration’s overtime regulations were enjoined in federal court in mid-November. The ruling struck down all components of the rule, including both the July 2024 and January 2025 salary threshold increases and the triennial automatic updates. However, the Biden administration filed a notice of appeal to the U.S. 5th Circuit Court of Appeals in hopes of reinstating the rule before its term ends.
Many anticipated that the Trump administration’s DOL would stop defending the Biden rule in court but now equivocate. Chavez-DeRemer hasn’t announced her position, but given organized labor’s support of the rule, there’s a possibility the DOL would continue to defend the rule—at least the July 2024 threshold.
Independent Contractor Regulation Offers Early Glimpse of DOL Views
Like the overtime regulations, the future of other labor and employment regulations appears uncertain in the face of Chavez-DeRemer’s nomination.
The independent contractor rule took effect but continues to face a number of judicial challenges and urgent lobbying to rescind the rule, especially from the “gig economy.” This sets up a battle between Big Labor and Big Tech.
Chavez-DeRemer has a number of options, which may reveal the strength of her influence. A first place to watch is whether the DOL changes positions and stops defending the rule.
The Federal Employment Law Insider (FELI) is written by David S. Fortney, H. Juanita Beecher, and Burton J. Fishman of Fortney & Scott, LLC.