Overtime Updates: Maryland Moves to Implement Biden-Era Rule

Breathing new life into former President Biden’s overtime rule at the state level, Maryland State Assembly Member Joe Vogel (D), introduced House Bill 582 which would raise the minimum salary threshold for overtime exemption from the current $35,568 to $58,656. This increase aligns with the second phase of the Biden administration’s final rule which remains the subject of ongoing litigation. 

What's next: The Maryland House will convene on March 13 to discuss the bill further, with two anticipated amendments. 

• The first amendment slightly lowers the proposed threshold to $57,164, instead of the $58,656 outlined in Biden’s rule. 

• The second amendment pushes back the compliance date from October 1, 2025, to January 1, 2027. 

Federal Developments: Lori Chavez-DeRemer provided responses to questions about overtime regulations and ongoing litigation posed by members of the Senate Health, Education, Labor, and Pensions Committee which held her February 19 nomination hearing. 

• Asked if she would withdraw the Department of Labor’s (DOL) appeal in the legal challenge to the Biden administration’s overtime rule, Chavez-DeRemer emphasized her intent to collaborate with the Solicitor’s Office and stated that she is committed to reviewing all regulations within the agency’s jurisdiction. 

• Questioned about whether she would consider reissuing an overtime rule using the 2019 rule’s methodology and her stance on automatic threshold updates without public input, she merely recognized that overtime rulemaking is a key responsibility of the DOL and stressed the importance of periodically reviewing the threshold to reflect economic changes while avoiding disruptions to the economy. 

The legal picture: Legal challenges to the Biden administration’s overtime rule continue to unfold in the courts. In Texas and Plano Chamber of Commerce et al. v. DOL, a case before the U.S. Court of Appeals for the Fifth Circuit, the DOL recently requested an extension to file its opening brief, now due on May 6. 

Meanwhile, on February 28, the DOL filed a Notice of Appeal in Flint Ave v. DOL, another case challenging the rule. The U.S. District Court for the Northern District of Texas had previously ruled against the Biden administration’s overtime rule, sending the case to the Fifth Circuit for further proceedings. 

The bottom line: Both court deadline extensions are seen as efforts to provide the incoming Trump administration with time to install Chavez-DeRemer and determine the future course of action regarding the litigation and potential rulemaking adjustments. 

DOL Secretary and Deputy days away from final confirmation: 

• Lori Chavez-DeRemer’s nomination to become the next Secretary of Labor cleared a final procedural hurdle before moving to the Senate floor for final confirmation, expected next week. 

• Keith Sonderling’s nomination for Deputy Secretary of Labor advanced out of the Senate HELP committee on a party line vote and is headed to the Senate floor.