The Feb. 28 notice of appeal may come as a surprise to employers who expected the Trump administration to abandon the final rule; attorneys who previously spoke to HR Dive said that the rule was effectively “dead” despite DOL’s State of Texas appeal because of the Trump administration’s conservative policy stance on overtime.
In fact, the new administration had already filed motions in the 5th Circuit pertinent to overtime rule litigation. On Jan. 22, two days after President Donald Trump’s inauguration, DOJ attorneys sent a letter to the 5th Circuit requesting a 30-day extension on the deadline set by the court to file an opening brief in the State of Texas appeal. The court granted the request and the agency’s filing deadline is currently set to March 7.
The April 2024 final rule proposed a two-step process that would have eventually raised the minimum annual salary threshold for overtime pay eligibility under the FLSA from $35,568 to $58,656 by Jan. 1, 2025. The rule would then have implemented a mechanism for automatically adjusting the threshold every three years using current wage data beginning in July 2027.
But a series of Texas court decisions froze the rule. The judge in State of Texas held that the rule exceeded DOL’s authority and was unlawful. Likewise, Cummings said in his decision that he found the State of Texas judge’s reasoning “persuasive,” and he adopted the same reasoning in ruling for the plaintiffs.
There is some intrigue in how the 5th Circuit might rule on the two appealed judgments given that the court signed off on DOL’s overall use of a salary basis test for determining overtime pay eligibility in last year’s Mayfield v. U.S. Department of Labor. The Mayfield plaintiffs alleged that the salary basis test had no basis in the FLSA’s text, but the 5th Circuit disagreed. The court did hold, however, that DOL “cannot enact rules that replace or swallow the meaning” of the FLSA’s text, adding that particular salary threshold may raise legal issues because of their size.
Trainor said the change is based on a federal judge’s decision in early January that struck down the 2024 rule as unconstitutional across the country. That Biden administration rule for the first time extended Title IX civil rights protections to LGBTQI+ students and employees at federally funded schools and colleges — including by prohibiting discrimination based on gender identity and sexual orientation.
Released in April 2024, the rule drew legal challenges, and courts blocked the regulations in at least 26 states.
Trainor also stated that the 2024 rule conflicts with a Jan. 20 executive order from President Donald Trump that requires all federal agencies and departments to recognize just two sexes — male and female — when it comes to “sex-protective” laws.
“As a constitutional matter, the President’s interpretation of the law governs because he alone controls and supervises subordinate officers who exercise discretionary executive power on his behalf,” Trainor’s letter said.
Supporters of the 2020 rule, developed under the first Trump administration, praised the letter.
Chad Wolf, executive vice president of the America First Policy Institute, said that under the 2020 rule, women and girls were “unjustly and illegally” denied access to sex-segregated athletic opportunities and intimate spaces. Linda McMahon, President Trump’s nominee for U.S. education secretary, is chair of the board at AFPI.
“Female athletes were seriously injured competing against males, and many were forced to undress in front of males,” Wolf said in a statement. “It was a misguided policy that did real harm, and this new guidance puts an end to it.”
But opponents to the 2020 rule voiced concern, saying it puts students at greater risk of harassment and discrimination.
“This is an incredibly disappointing decision that will leave many survivors of sexual violence, LGBTQ+ students, and pregnant and parenting students without the accommodations critical to their ability to learn and attend class safely,” said Emma Grasso Levine, senior manager of Title IX policy and programs at Know Your IX, in a statement. “Schools must step up to protect students in the absence of adequate federal guidance.”
Trainor said the change is based on a federal judge’s decision in early January that struck down the 2024 rule as unconstitutional across the country. That Biden administration rule for the first time extended Title IX civil rights protections to LGBTQI+ students and employees at federally funded schools and colleges — including by prohibiting discrimination based on gender identity and sexual orientation.
Released in April 2024, the rule drew legal challenges, and courts blocked the regulations in at least 26 states.
Trainor also stated that the 2024 rule conflicts with a Jan. 20 executive order from President Donald Trump that requires all federal agencies and departments to recognize just two sexes — male and female — when it comes to “sex-protective” laws.
“As a constitutional matter, the President’s interpretation of the law governs because he alone controls and supervises subordinate officers who exercise discretionary executive power on his behalf,” Trainor’s letter said.
Supporters of the 2020 rule, developed under the first Trump administration, praised the letter.
Chad Wolf, executive vice president of the America First Policy Institute, said that under the 2020 rule, women and girls were “unjustly and illegally” denied access to sex-segregated athletic opportunities and intimate spaces. Linda McMahon, President Trump’s nominee for U.S. education secretary, is chair of the board at AFPI.
“Female athletes were seriously injured competing against males, and many were forced to undress in front of males,” Wolf said in a statement. “It was a misguided policy that did real harm, and this new guidance puts an end to it.”
But opponents to the 2020 rule voiced concern, saying it puts students at greater risk of harassment and discrimination.
“This is an incredibly disappointing decision that will leave many survivors of sexual violence, LGBTQ+ students, and pregnant and parenting students without the accommodations critical to their ability to learn and attend class safely,” said Emma Grasso Levine, senior manager of Title IX policy and programs at Know Your IX, in a statement. “Schools must step up to protect students in the absence of adequate federal guidance.”
by CUPA-HR | January 9, 2025
On January 9, a federal judge in the Eastern District of Kentucky Court vacated the Biden administration’s Title IX regulations. The order strikes down the regulations nationwide, reverting enforcement back to the 2019 Title IX regulations set by the Trump administration.
The Biden administration’s Title IX final rule was released in April 2024 and was set to take effect on August 1, 2024. Soon after the rule was published, several states filed legal challenges against it, resulting in preliminary injunctions that blocked the rule from taking effect in 26 states and hundreds of schools in other states that did not challenge the regulations.
The Biden administration appealed the preliminary injunctions to the Supreme Court, requesting that the court limit the scope of the preliminary injunctions placed by the lower courts to block only those provisions that related to gender identity. They argued that the lower courts’ decisions to grant the preliminary injunctions were based on concerns with the expanded protections for transgender students and that other provisions like the new grievance procedures and training requirements set forth by the final rule should be able to take effect. The Supreme Court ultimately rejected the Biden administration’s request, arguing that the gender identity provisions were “intertwined with and affect other provisions of the rule.”
In the ruling that vacates the rule nationwide, the federal judge stated that the Biden administration’s Title IX rule is unlawful because Title IX’s prohibition on sex discrimination does not include the scope laid out in the regulations, which include expanded protections for pregnancy or related conditions, gender identity and sexual orientation. The order also states that the rule violates the First Amendment and that it is “arbitrary and capricious.”
The judge’s order almost certainly ends any hopes for the Biden administration’s Title IX regulations to take effect nationwide. The Biden administration may decide to appeal the decision to a higher court, but efforts to reinstate the rule will likely be unsuccessful given the few days they have left in office and the incoming Trump administration’s unwillingness to defend the rule in court. Alternatively, the Trump administration may seek to update their 2019 Title IX regulations, though any urgency to do so may be diminished now that the 2019 regulations are back in place.
CUPA-HR will continue to monitor for Title IX updates and keep members apprised via Washington Insider Alert emails and the blog.
by CUPA-HR | December 18, 2024
On December 18, the Department of Homeland Security (DHS) published a final rule to modernize the H-1B visa program, finalizing changes first proposed in October 2023. The rule will take effect on January 17, 2025, introducing significant updates aimed at clarifying the requirements of the H-1B program and improving program efficiency, providing greater benefits and flexibility for petitioners and beneficiaries, and strengthening program integrity measures.
The final rule responds to comments from a variety of stakeholders, including concerns raised by CUPA-HR and others in a multi-sector joint comment letter signed by 74 organizations and a higher education-focused letter led by the American Council on Education (ACE). Both letters advocated for changes to the definition of a “specialty occupation” and other key areas to ensure the regulations better align with workforce needs. The final rule incorporates feedback from stakeholders and aims to provide clarity while maintaining program integrity.
Below are highlights of some noteworthy provisions in the final rule and next steps.
The final rule modifies the definition of an H-1B specialty occupation in response to public comments, including those CUPA-HR signed onto in a multi-sector joint comment letter and a higher education-focused letter. DHS clarified that a degree or its equivalent must be “directly related” to the duties of the position, with “directly related” defined as having a logical connection between the degree and the job duties. This change addresses concerns raised in comments that the proposed language could have been misinterpreted to require adjudicators to focus solely on a beneficiary’s specialized studies.
The rule also permits a range of qualifying degree fields, provided that each field is directly related to the position’s duties. Additionally, DHS removed references to specific degree titles such as “business administration” and “liberal arts” to avoid undue reliance on degree titles. This recognizes that degree titles can vary between institutions and evolve over time, emphasizing the relevance of the degree’s content rather than its name. These changes align with the requests made in the joint comment letter, ensuring that the definition of a specialty occupation is practical and reflective of modern workforce realities.
The final rule codifies DHS’s current deference policy, providing greater clarity on how U.S. Citizenship and Immigration Services (USCIS) adjudicators should approach petitions involving the same parties and underlying facts. Under the codified policy, adjudicators are generally required to defer to a prior USCIS determination of eligibility when adjudicating a subsequent Form I-129, Petition for Nonimmigrant Worker. However, deference will not apply if a material error in the prior approval is discovered, or if new material information or a material change impacts the petitioner’s or beneficiary’s eligibility.
The final rule eliminates the itinerary requirement, which previously required petitioners to provide an itinerary detailing the dates and locations of services or training when filing Form I-129. This change addresses concerns that the requirement was largely duplicative of other information already provided in the petition. Eliminating this requirement simplifies the filing process, reducing administrative burdens for petitioners. The change is particularly beneficial for individuals in roles such as medical residencies under H-1B, where work may occur at multiple sites, as it removes unnecessary procedural hurdles without impacting USCIS’s ability to assess eligibility.
The final rule modestly broadens the scope of H-1B cap exemptions for nonprofit and governmental research organizations, as well as nonprofits affiliated with institutions of higher education. The revised definitions recognize that qualifying organizations may have multiple fundamental activities or missions beyond just research or education. Under the updated regulations, organizations can qualify for a cap exemption if research or education is one of their fundamental activities, even if it is not their primary activity or mission. These changes better align the cap exemption criteria with the diverse roles and structures of modern nonprofit and governmental entities.
The final rule extends cap-gap protections for F-1 students transitioning to H-1B status. Under the new provision, F-1 students who are beneficiaries of timely filed, nonfrivolous H-1B petitions will receive an automatic extension of their F-1 status and employment authorization through April 1 of the following calendar year. This extension provides up to six additional months of status and work authorization, reducing the risk of lapses in lawful status or employment eligibility while awaiting approval of the change to H-1B status.
The final rule codifies and strengthens the USCIS site visit program, which is administered by the Fraud Detection and National Security (FDNS) unit. DHS clarifies that refusal to comply with a site visit may result in the denial or revocation of a petition. Additionally, the rule explicitly authorizes DHS to conduct site visits at various locations connected to the H-1B employment, including the primary worksite, third-party worksites, and any other locations where the employee works, has worked, or will work. This provision formalizes long-standing practices and enhances USCIS’s ability to monitor compliance with H-1B program requirements.
The rule takes effect on January 17, 2025, just days before the next presidential inauguration. While it is unclear if the incoming Trump administration will seek to modify or withdraw the regulation, the codification of key provisions, such as the deference policy, makes them more difficult to rescind without formal rulemaking.
Employers should also prepare for the required use of a new edition of Form I-129, Petition for a Nonimmigrant Worker, on the rule’s effective date. Because there will be no grace period for accepting prior editions of the form, employers should review the preview version, which will be published soon on uscis.gov, to prepare for the transition.
by CUPA-HR | November 15, 2024
On November 15, a federal judge in the Eastern District Court of Texas ruled to strike down the Biden administration’s Fair Labor Standards Act (FLSA) overtime final rule. The ruling strikes down all components of the rule, meaning both the July and January salary thresholds are no longer in effect, and the triennial automatic updates will not take place. The decision applies to all covered employers and employees under the FLSA nationwide.
The Eastern District Court of Texas held a hearing on the business groups’ lawsuits challenging the overtime regulations on November 8. During the hearing, the judge suggested that it would be problematic if DOL’s salary basis replaced the duties test established under the FLSA regulations. He also noted that the Biden administration’s regulations were projected to have a larger number of workers impacted by the salary threshold increase than the Trump administration’s 2019 rule. The judge did not rule from the bench, but his remarks showed skepticism about the Biden administration’s rule.
As a reminder, the final rule implemented a two-phase approach to increasing the minimum salary threshold under the FLSA overtime regulations. The first increase took effect on July 1, increasing the minimum salary threshold from the current level of $684 per week ($35,568 per year) to $844 per week ($43,888 per year). The second increase was set to take effect on January 1, 2025, and it would have increased the minimum salary threshold again to $1,128 per week ($58,656 per year). The final rule also adopted automatic updates to the minimum salary threshold that would occur every three years.
Soon after the final rule was published, several lawsuits were filed challenging the final rule. The suit claimed that the salary threshold that was supposed to go into effect on January 1, 2025, was so high it would result in more than 4 million individuals being denied exempt status, even though these individuals could be reasonably classified as exempt based on their duties, and in doing so, the rule violated both the statutory language of the FLSA and prior court decisions. The suits also challenged the automatic updates. The Eastern District Court of Texas granted a preliminary injunction for public employers in Texas prior to the July 1 effective date, stopping the rule from taking effect for those employers only. For private employers in Texas and all other employers in the country, the rule went into effect on July 1, and the January 1 effective date was still in play.
With the decision, the salary threshold set in the 2019 regulations ($35,568 per year or $683 per week) will be the salary threshold employers should adhere to. Whether President-elect Trump decides to increase the minimum salary threshold during his second term remains to be seen, but there will be no effort from his incoming administration to appeal the decision in favor of the Biden administration’s threshold. CUPA-HR will continue to keep members apprised of any updates related to the FLSA overtime regulations.