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May 01, 2024 at 01:11 PM
Acting Labor Secretary Julie Su told House lawmakers Wednesday that Labor’s new fiduciary rule can withstand legal challenges.
During a question and answer exchange with Rep. Tim Walberg, R-Mich., during a hearing held by the House Education and the Workforce Committee, Walberg reminded Su that Labor’s 2016 rule was struck down in 2018 by the U.S. Court of Appeals for the Fifth Circuit, finding that the rule “exceeded DOL’s authority.”
Labor released on April 23 the final fiduciary rule as well as a new rule broadening worker eligibility for overtime pay. The Obama administration’s overtime rule was struck down in 2017.
The recently finalized new fiduciary rule “would cover the same sales practices of the 2016 rule,” Walberg continued. “So, I have the same question for [Labor's] overtime rule and the fiduciary rule: Why do you expect that the courts will view the 2024 rules — on these two rules — differently than what they ruled before when they threw it out?”
Su responded: “In the process of making the rules, we did engage in … listening sessions, we had an open comment period and took into account all the different comments —”
Walberg interrupted: “But did you check the court record on it?”
