Multiple significant developments have surfaced in the realm of Gainful Employment (GE) law, throwing light on its applicability and enforcement. Most importantly, the Department of Education (ED) has unveiled the official and final GE rule.
Historically focused on for-profit institutions, the GE rules have evolved to be equally relevant for non-profit entities. This raised many questions about the role of GE. The latest rule, established by the ED, has therefore been of particular interest to stakeholders.
Released on October 10, 2023, ahead of a potential government shutdown and amidst debates surrounding the ability to adhere to the master calendar requirement, this rule has triggered a fresh discourse in the industry. The final rule bears substantial similarity to the earlier proposed rule circulated in May 2023, albeit with a few exceptions.
Barring any intervention by the courts, which does seem likely given the contentious nature of the subject, the new rule is set to come into effect on July 1, 2024. The underlying focus of the final rule, however, remains tightly woven around GE.
As is the norm with any regulatory overhaul, the road ahead will surely be furnished with legal challenges and debates. Professionals in the industry, encompassing the world’s most influential corporations and law firms, will need to keep abreast with these changes for successful navigation of their respective legal landscapes.
The entirety of the rule’s implications remains to be thoroughly examined and comprehended, especially as it pertains to non-profit institutions. Continued monitoring of these developments is thus crucial and would provide much-needed understanding of these shifts in GE law.