DOL Seeks to Eliminate 63 Regulations in First Rulemaking Effort

Last week, the U.S. Department of Labor (DOL) became the first agency to set in motion the Trump administration directive to eliminate ten existing regulations for every new one issued, as set forth by DOL Secretary Chavez-DeRemer announcing the elimination of 63 regulations.  

• DOL’s action is a mix of withdrawing rules that have not become final and seeking notice and comment to rescind rules that are already in force.

Why it matters: While the first set of regulations slated for rescission are targeted at specific industries or federal contractors, setting these rescissions in motion frees DOL to take action on two priorities for employers: rules relating to exemptions from overtime requirements and worker classification.

Winding down the role of Office of Federal Contract Compliance Programs: DOL’s rescission includes all regulations that give effect to Executive Order 11246 (affirmative action requirements for federal contractors) which was revoked by the President in January.

• Affirmative action requirements remain in place for individuals with disabilities under Section 503 of the Rehabilitation Act and for veterans under the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), but DOL is chipping away at some of the related requirements like voluntary self-identification and utilization goal provisions for employees with disabilities.

What’s next: Many of the rescissions require both public comment and the publication of final rules which will take several months to complete. In addition, legal challenges are likely for some of the more impactful rescissions such as worker safety.