Guidance Clarity Act of 2025

— 357 — Department of Education NEW EXECUTIVE ORDERS THAT THE PRESIDENT SHOULD ISSUE Guidance Documents l The President should immediately reinstate and reissue Executive Order 13891: Promoting the Rule of Law Through Improved Agency Guidance Documents, 84 Fed. Reg. 55235 (Oct. 9, 2019), and Executive Order 13892: Promoting the Rule of Law Through Transparency and Fairness in Civil Administrative Enforcement and Adjudication (Oct. 15, 2019). These executive orders required all federal agencies to treat guidance documents as non-binding in law and practice and also forbade federal agencies from imposing new standards of conduct on persons outside the executive branch through guid- ance documents. They required all federal agencies to apply regulations and statutes instead of guidance documents in any enforcement action. President Biden revoked these executive orders on January 20, 2021, demonstrating that these executive orders effectively restrained the abuses of an expansive administrative state. l Require APA notice and comment. The President should issue an executive order requiring the Office for Civil Rights’ Case Processing Manual to go through APA (Administrative Procedures Act) notice and comment. l Protect the First Amendment. The President should issue an executive order requiring grant applications (SF-424 series) to contain assurances that the applicant will uphold the First Amendment in funded programs and work. l Minimize bachelor’s degree requirements. The President should issue an executive order stating that a college degree shall not be required for any federal job unless the requirements of the job specifically demand it. l Eliminate the “list of shame.” Educational institutions can claim a religious exemption with the Office for Civil Rights at the Department of Education from the strictures of Title IX. In 2016, the Obama Administration published on the Department of Education’s website a list of colleges that had applied for the exemption. This “list of shame” of faith-based colleges, as it came to be known, has since been archived on ED’s website, still publicly available. The President should issue an executive order removing the archived list and preventing such a list from being published in the future. — 358 — Mandate for Leadership: The Conservative Promise NEW AGENCY POLICIES THAT DON’T REQUIRE NEW LEGISLATION OR REGULATIONS TO ENACT Transparency of FERPA and PPRA Complaints l The Department of Education should be transparent about complaints filed on behalf of families regarding the Family Educational Rights and Privacy Act (FERPA) and the Protection of Pupil Rights Amendment (PPRA). l At the same time, the Department of Education should develop a portal and resources for parents on their rights under FERPA and PPRA. This portal should also contain an explanation of the Health Insurance Portability and Accountability Act (HIPPA) and public school procedures to demonstrate that the law does not deprive parents of their right to access any school health records. The D.C. Opportunity Scholarship Program In 2011, Congress added new requirements to the D.C. Opportunity Scholarship Program stating that participating private schools must submit to site visits by the program administrator, inform prospective students about the school’s accreditation status, mandate that teachers of core subjects have bachelor’s degrees, and require participating students to take some form of nationally norm-referenced test. Notably, the 2011 reauthorization also required, for the first time, that participating private schools be accredited or be on a path to accreditation. The 2017 reauthorization went further, requiring that each participating school supply a certificate of accreditation to the administering entity upon program entry, demonstrating that the school is fully accredited before being allowed to participate. The list of approved accreditors is entirely too small to serve the mission of the diverse schools in the nation’s capital. l Although the accreditation regulations should be removed entirely by Congress, in the meantime, the next President should issue an executive order expanding the list of allowable accreditors. Transparency Around Program Performance and DEI Influence The next President should issue a series of executive orders requiring: l An accounting of how federal programs/grants spread DEI/CRT/ gender ideology, l A review of outcomes for GEAR UP and the 21st Century grants programs,

— 592 — Mandate for Leadership: The Conservative Promise Overtime Pay Threshold. Overtime pay is one of the most challenging aspects of the Fair Labor Standards Act rules. “Nonexempt workers” (e.g., workers whose job duties fall within the law’s power or whose total pay is low enough) must be paid overtime (150 percent of the “regular rate”) for every hour over 40 in a work- week. Overtime requirements may discourage employers from offering certain fringe benefits such as reimbursement for education, childcare, or even free meals because the benefits’ value may be included in the “regular rate” that must be paid at 150 percent for all overtime hours. And because some of these fringe ben- efits may be more valuable (and often come with tax preferences that benefit the worker), the goal should be to set a threshold to ensure lower-income workers have the protections of overtime pay without discouraging employers from offering these benefits. l DOL should maintain an overtime threshold that does not punish businesses in lower-cost regions (e.g., the southeast United States). The Trump-era threshold is high enough to capture most line workers in lower-cost regions. One possibility to consider (likely requiring congressional action) would be to automatically update the thresholds every five years using the Personal Consumption Expenditures (PCE) as an inflation adjustment. This could reduce the likelihood of a future Administration attempting to make significant changes but would also impose more adjustments on businesses as those automatic increases take hold. l Congress should clarify that the “regular rate” for overtime pay is based on the salary paid rather than all benefits provided. This would enable employers to offer additional benefits to employees without fear that those benefits would dramatically increase overtime pay. l Congress should provide flexibility to employers and employees to calculate the overtime period over a longer number of weeks. Specifically, employers and employees should be able to set a two- or four- week period over which to calculate overtime. This would give workers greater flexibility to work more hours in one week and fewer hours in the next and would not require the employer to pay them more for that same total number of hours of work during the entire period. Compliance-Assistance Programming. Labor agencies are often tempted to encourage “over compliance” by companies subject to regulation by pursuing “regulation through enforcement” strategies. Rather than giving regulated enti- ties clear boundaries for what they can and cannot do under the law, the agencies — 593 — Department of Labor and Related Agencies rely on the vagueness of the law to bring enforcement activity against businesses that fail to meet an inspector or agency head’s personal standard. This is not fair to regulated parties and results in disfavored companies bearing the brunt of the agencies’ enforcement efforts even though their behavior may be within the main- stream of employer behavior. l Labor agencies should provide compliance assistance to help businesses and workers better understand the agencies’ position on their own rules and should do so in a way that makes it easier to follow those rules. This frees people to focus on their work rather than slogging through an ever-growing body of laws, rules, and guidance documents generated by the agencies. Clear and Restrictive Rules on Guidance Documents. Federal agencies not only issue regulations to fill in gaps left by legislation, but also supplement those reg- ulations with “guidance” documents that occupy a unique and often confusing area between law and “helpful advice.” Unfortunately, wielded by overzealous enforcement agents, such guidance, some of it even hidden from public view, morphs into binding law used against unsuspecting employers. Guidance can be a tricky thing and can be used for good or bad. It should be used to make compli- cated regulations easier to understand, so that businesses can do their actual jobs and focus on providing jobs to American workers and value to consumers (really, compliance assistance). But guidance is often used to create new rules overnight without following legal requirements—like giving the public an opportunity to provide valuable input. This wrongful use of guidance hurts workers and those who employ them. In October 2019, President Trump signed an executive order ending this abusive practice and created a new, fairer system for American busi- nesses and their employees. In response, DOL published its PRO Good Guidance rule,10 which expressly limits its use of guidance in enforcement actions and gives the public the opportunity to submit comments to influence the department’s deci- sions on creating, revising, and even rescinding guidance. Under this rule, agencies cannot treat guidance as legally binding and must make all guidance documents readily accessible on their searchable online databases. This rule was immediately rescinded by the Biden Administration. l DOL should reinstitute the PRO Good Guidance rule via notice and comment. l Congress should amend the Administrative Procedure Act11 to explicitly limit the use of guidance documents.

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