In the Headlines
July 22, 2024

OT Rule Case Is Key Test in Post-Chevron World

Law360

Employment and litigation attorney Timothy Taylor was quoted in a recent Law360 article about how courts will approach a challenge to the U.S. Department of Labor's (DOL) attempt to regulate overtime exemptions after the U.S. Supreme Court overturned Chevron deference in Loper Bright Enterprises v. Raimondo. The long-held principle gave deference to government agencies when interpreting ambiguous statues. Now that the courts have greater authority to act in that role, R.U.M. Enterprises has filed a brief arguing whether the DOL's directive to define overtime exemptions under the Fair Labor Standards Act (FLSA) can include both salary specifications and duties tests. Mr. Taylor said questions about the validity of the salary threshold requirement existed before Chevron was overturned and weighed in on the current state of the argument.

"There's a certain logic to the idea of, well, it's always destroying the duties test at some level or another," Mr. Taylor said. "I think that the overruling of Chevron adds some additional force to those arguments."

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Holland & Knight announced the formation of its Chevron Deference Working Team in advance of the U.S. Supreme Court's June 28, 2024, Loper decision, which overturned the Chevron deference doctrine and will lead to a period of regulatory changes and potential legal challenges for some time.

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