Washington Update – Steve Rossi, Vice President of Advocacy

With most attention turned to the 2024 Election Cycle or the political theater permeating Capitol Hill, ASA has been actively engaged in several legislative and regulatory issues of direct interest to our industry, with some recent developments:
 

• DOE Consumer Water Heater Rule – On April 30^th, The Department of Energy finalized energy efficiency standards for consumer water heaters. This was the culmination of a process that began in 2023. Comments on the rule were filed by ASA, as well as manufacturer members, to make sure industry positions were represented. The final rule announcement can be found here.
   
• Joint Employer CRA – Over the last year, ASA has engaged individually and with its coalition partners on the National Labor Relations Board (NLRB) Joint Employer Rule. In October 2023, the NLRB finalized its rule which would likely increase liabilities for companies as the definition of a ‘joint employer’ would be broadly redefined. As a result of this, ASA joined its industry allies in encouraging Congress to review this rule under the Congressional Review Act (CRA), which passed both the Senate and the House. On May 3, President Biden vetoed the measure, and the House may consider additional action as soon as this week.
   
• Department of Labor Overtime Rule – ASA has been active in opposing the DOL’s overtime rule, by filing comments, as well as asking for a delay in implementation, to September 1, 2024. The final rule, issued on April 23^rd,  would significantly increase the OT threshold for both minimum salary and highly compensated employees (HCE). The minimum salary threshold will increase to $43,888 on July 1, 2024, and then to $58,656 on January 1, 2025 (the current threshold is $35,568). For HCE’s the threshold will increase to $132,964 on July 1, 2024, and then to $151,164 on January 1, 2025 – the current threshold is $107,432. ASA remains actively engaged on the issue and will continue to provide updates as available. 
   
• Federal Trade Commission (FTC) Noncompete – Also on April 23^rd, the FTC voted 3-2, to ban noncompete agreements. The final rule would go into effect 120 days after being published in the Federal Register and require companies with noncompete agreements in effect to notify employees that they will not be enforced. This is an epic ruling by the FTC and many industry associations are of the opinion that the FTC has overstepped its authority in attempting to implement this rule. Legal action against the FTC is expected. 

With so many regulatory decisions coming out of the Biden Administration before the late May deadline, to avoid the Congressional Review Act for new rules, ASA remains engaged on these and other policies coming out of Washington to help protect your business interests and those of your employees. 
 

If you have any questions, please contact ASA Vice President of Advocacy Steve Rossi at srossi@asa.net.