Loper Bright, Jarkesy, and Corner Post decisions will affect workplace agencies

As discussed in the lead article of this issue of FELI, the triumvirate of decisions on agency power—Loper Bright, Jarkesy, and Corner Post—represent a completely new world for employers and federal agencies (see “Supreme Court ends ‘Administrative State’"). These cases challenge not only regulations recently issued by the Biden administration but also long-established regulations and the administrative enforcement process used by many agencies. The chaos and uncertainty these decisions will release for employers is already beginning to unfold.

Salary basis test for exemption

Going back to the Obama administration, the Department of Labor (DOL) has attempted to revise the regulations for the Fair Labor Standards Act (FLSA). The Obama DOL attempted to increase the annual salary basis for overtime from approximately $23,000 to approximately $47,000 as well as indexing the salary to increase every three years. A Texas district court issued a nationwide injunction and held the Act allowed exempt status to be determined only by a worker’s duties. The decision was eventually dismissed.