New overtime regulations began July 1, what do they mean for workers?

Richard Mack Jr., a union labor lawyer with Miller Cohen, P.L.C., joined the America’s Work Force Union Podcast to discuss the impact of the new overtime regulations and how the Chevron Deference being overturned by the U.S. Supreme Court could negatively impact unions and the working class.

On July 1, the new overtime regulations from the Biden Administration went into effect in all but one state. Texas is waiting on the ruling for an injunction filed in their state courts. Mack then explained the updated regulations for workers to be eligible for overtime pay under the Fair Labor Standards Act. He outlined the new minimum and maximum amount of money a worker can make before falling into a potential exception to the standard. Mack explained that the new standards don’t impact potentially exempt workers and explained the difference between exempt and non-exempt workers. The projected annual income transfer from employers to employees under the new regulations would increase by nearly $1.5 billion.

While that is positive for workers, the U.S. Supreme Court announced a decision in Loper Bright Enterprises v. Raimondo that could negatively impact unions and workers. Since 1984, the Chevron Deference has created a standard that the courts would defer to a presidentially appointed expert to interpret ambiguous language in laws relating to their industry. Following the Supreme Court's decision, federal courts will determine federal statutes and ignore expert opinion.

Mack discussed how the Loper Bright Decision could impact the new overtime regulations. The regulations are considered an interpretation of laws by the Department of Labor, making it so the federal courts can potentially overturn the overtime regulations. He also talked about the new problems the decision has made for members of Congress. For any new statute, it will fall on lawmakers in Congress to provide examples of complicated federal laws to try to clarify new policies, creating a concern that future laws could be written by special interest groups.

Listen to the show above to hear more from Mack about the overtime regulations and impact of having the Chevron Deference overturned.