By Andrew J. Sommer and Lindsay A. DiSalvo

President-elect Donald Trump has chosen Andrew Franklin “Andy” Puzder to nominate as his Secretary of Labor, according to Trump’s transition team.  Mr. Puzder is the CEO of CKE Holdings, the parent company of Hardee’s and Carl’s Jr.  He has been a vocal critic of the Obama Labor Department’s overtime regulations and efforts to increase the federal minimum wage. As Labor Secretary, Mr. Puzder will oversee the federal apparatus that investigates violations of minimum wage, overtime and workplace safety laws and regulations.

Puzder on Wage and Hour Issues

An increase in the federal minimum wage and an expansion in overtime eligibility have been priorities for the outgoing Secretary of Labor Thomas Perez.  On Sec. Perez’s watch, the Department of Labor has issued new overtime regulations increasing the minimum salary threshold level in order to qualify an employee as exempt from overtime.  Mr. Puzder denounced this new overtime rule.  In an op-ed piece earlier this year in Forbes, Puzder said:

“[the overtime regulation] will add to the extensive regulatory maze the Obama Administration has imposed on employers, forcing many to offset increased labor expense by cutting costs elsewhere. . . .  [This cost cutting would result in reduced opportunities, bonuses, benefits and promotions.]”

The status of the new overtime rule is presently uncertain after a Texas federal court temporarily blocked the rule from taking effect.  The U.S. Court of Appeals for the Fifth Circuit has just granted the Department of Labor’s request to expedite the appeal from that preliminary injunction order, but that appeal is unlikely to be decided before Trump is inaugurated as the next president on January 20, 2017.  Accordingly, under Mr. Puzder’s leadership, the DOL could very well withdraw the pending appeal before a decision is issued by the Fifth Circuit, and otherwise not support the new overtime rule. Even if the overtime rule eventually takes effect, Puzder’s arsenal will include the authority to engage in rulemaking to roll back or modify the overtime rule, consistent with the notice and comment process under the federal Administrative Procedures Act.

Other immediate measures Puzder could take to shift or reverse the direction of the Obama DOL would be to Continue reading →