The NPRM proposes a framework more consistent with longstanding judicial precedent on which employers have relied to classify workers as employees or independent contractors under the FLSA. $(document).ready(function () {
Tuesday, February 28, 2023. According to DOLs agenda, the proposed rule will update the salary level at which many workers become exempt from the Fair Labor Standards Acts minimum wage and overtime requirements. All rights reserved. In its recent spring regulatory agenda, the U.S. Department of Labor (DOL) announced its plans to issue a proposed overtime rule in October 2022. .table thead th {background-color:#f1f1f1;color:#222;} .manual-search ul.usa-list li {max-width:100%;} The case hinged on the "salary basis" test for the white . The .gov means its official. Please log in as a SHRM member. The Department delayed the rule on March 4, 2021, and then withdrew it on May 6, 2021, believing that it was inconsistent with the Fair Labor Standards Act's text and purpose. Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . Colorado Whistleblower, Anti-Retaliation, Non-Interference, and Notice-Giving Rules ("Colorado WARNING Rules") 7 CCR 1103-11 Sandra Parker-Murray 11.01.2022; Brian Polovoy 11.02.2022; Prevailing Wage and Residency (PWR) Rules 7 CCR 1103-6 Ion Cotsapas 10.05.2022; Wage Protection Rules 7 CCR 1103-7 As we previously reported in our New Year's Update for 2022, the US Department of Labor (DOL's) regulatory agenda included proposed rulemaking on the Fair Labor Standards Act (FLSA) overtime rules by April 2022. From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. Whitepaper & Research Library India & APAC, Advanced Certificate in Human Resource Management (ACHRM), Advanced Human Resource Management Program (AHRMP), Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions, Proposed Overtime Rule Scheduled to Be Published in May, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. Of note, in 2016, the Obama administration attempted to raise the salary basis threshold from $455/week to $921/week. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} We also anticipate some proposed changes to the duties tests. Members may download one copy of our sample forms and templates for your personal use within your organization. In particular, the House Education and Labor Committee (expected to be renamed the "House Education and Workforce Committee" by the new Republican majority) is expected to pursue aggressive oversight of the DOL and the NLRB. Labor Rights. For example, the lack of transparency in knowing what to expect makes it more difficult to hold the administrative state accountable for its plans. SHRM India has India-specific pricing and certification details. $('.container-footer').first().hide();
XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. In its recent spring regulatory agenda, the U.S. Department of Labor (DOL) announced its plans to issue a proposed overtime rule in October 2022. FTC Proposed Rule Would Ban Noncompete Agreements The Federal Trade Commission (FTC) has proposed a rule that would ban employers from imposing noncompete agreements on their employees. The proposed rule, which would rescind and replace a prior rule published in January 2021, would shift the analysis of whether a worker is an employee of a business for purposes . @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Though it marked the first increase to the FLSA's overtime threshold in over a . ET, Webinar The U.S. Department of Labor (DOL) had predicted it would issue its proposed new rule to overhaul the overtime regulations of the Fair Labor Standards Act in October, but we are still waiting for that proposal. As an FLSA refresher, to meet the criteria for exemption from overtime, an employee typically must pass the standard of two "tests": The first test centers on the employee's responsibilities in the organization. President Joe Biden directed the DHS on Jan. 20, 2021, to take all appropriate actions to preserve and strengthen DACA, consistent with applicable law. That final rule took effect on January 1, 2020. Let HR Dive's free newsletter keep you informed, straight from your inbox. The Equal Employment Opportunity Commission has settled a COVID discrimination case and also published for public comment its draft strategic enforcement plan. The proposed rule sent stocks for gig companies like DoorDash, Lyft and Uber down. On July 16, 2021, the U.S. District Court for the Southern District of Texas vacated the June 2012 memorandum that created the DACA policy and permanently blocked the DHS from administering the DACA program and from reimplementing DACA without compliance with the Administrative Procedure Act. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. In the Fall 2021 Regulatory Agenda, the DOL's Wage and Hour Division (WHD) announced plans to issue an NPRM as early as April 2022 to address overtime pay requirements for certain white-collar employees.1 Since 1938, the Fair Labor Standards Act (FLSA or Act) has established the minimum wage and overtime pay Regulatory agenda lists the status of anticipated regulatory actions. While that guidance is onlytemporary, DHS issued aRequest for Public Input (RPI) on October 26, 2021, to determine whether those flexibilities should be kept in place permanently. Today, the Office of Federal Contract Compliance Programs (OFCCP) acted to protect workers from discrimination and safeguard principles of religious freedom by rescinding the rule, "Implementing Legal Requirements Regarding the Equal Opportunity Clause's Religious Exemption.". Your session has expired. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) {
While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. Once anticipated in the spring, the proposed rule will recommend how to implement the exemption of bona fide executive, administrative and professional employees from the Fair Labor . . 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). The Division of Labor Standards protects all workers, including those that are undocumented or paid off the books, and ensures employers are following Labor Laws. A Davis-Bacon Act final rule is now scheduled for December. Please confirm that you want to proceed with deleting bookmark. Misclassification is a serious issue that . Comments on the draft plan must be submitted by February 9, 2023. The California standards require that more than 50 percent of the employee's time be spent solely on performing exempt duties in orderto be classified as exempt, he noted. $("span.current-site").html("SHRM China ");
Therefore, do not send or include any information in your email that you consider to be confidential or privileged. Need help with a specific HR issue like coronavirus or FLSA? Before sharing sensitive information, make sure youre on a federal government site. Despite relying on the labor of millions of workers to provide their services, platform companies have established a business model on the premise that they employ no one. On September 24, 2019, the Department of Labor issued its final overtime rule to increase the minimum salary threshold for executive, administrative and professional exemptions from $455 per week ($23,660 annually) to $684 per week ($35,568 annually). .usa-footer .container {max-width:1440px!important;} else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) {
When autocomplete results are available use up and down arrows to review and enter to select. Additionally, CUPA-HR submitted commentsin response to the RPI based on a recent survey detailing members experiences with the Form I-9 verification process flexibilities. The United States Department of Labor (DOL) is expected to propose a new salary threshold for various overtime exemptions under the Fair Labor Standards Act (FLSA). "If there is a significant increase in the salary-basis level for the executive, administrative and professional exemptions, this change will require employers to identify and . United States Department of Labor (DOL) is expected to issue a new proposal for a new salary threshold for several overtime exemptions under the Fair Labor Standards Act (FLSA). CUPA-HR participated in all of the calls, expressing our concerns with the timing of the rulemaking as it relates to the ongoing challenges of the COVID-19 pandemic, a historically tight labor market, and increasing inflation. These changes moved the threshold to $684 per week . By: Jenny R. Yang February 28, 2023. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} New DOL Overtime Threshold in 2022. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments. Every employer of employees subject to the Fair Labor Standards Act's minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments. More than 100 business and industry groups are urging the U.S. Department of Labor to seek public input before it releases a highly anticipated rule to update overtime pay regulations that is expected to extend time-and-a-half wages to more workers. The U.S. Department of Labor (DOL) announced in its spring regulatory agenda in mid-June that a proposed new overtime rule will be released later this year. While details of the 2022 proposed changes are forthcoming, organizations should prepare now to address pending challenges and associated opportunities. Certain groups have been advocating for a tightening of the duties tests, claiming that the tests are currently too loose and are toothless. We will advise you when the proposed test is finally issued. To cope with a paradoxical labor market, HR pros still squarely focused on recruiting may need to re-evaluate role requirements, inclusion initiatives and more. 2022: Fall 2022 Rulemaking Comments. The new proposal is likely to be issued in the near future and could be issued as early as this month. On February 22, 2023, the final farm labor overtime regulations were adopted, codifying Commissioner Reardon's order adopting the recommendation of the Farm Laborers Wage Board to lower the current 60-hour threshold for overtime pay to 40 hours per week by January 1, 2032, allowing 10 years to phase in the new threshold. Track your regular work hours, break time, and overtime hours. Last fall, the DOL said it would propose new overtime rules - which are expected to raise the minimum salary for most overtime-exempt employees and possibly update the . On June 21, the Biden administration released the anticipated Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions (Regulatory Agenda), providing the public with a detailed glimpse into the regulatory and deregulatory activities under development across approximately 67 federal departments, agencies and commissions. Virtual & Washington, DC | February 26-28, 2023. To request permission for specific items, click on the reuse permissions button on the page where you find the item. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } You have successfully saved this page as a bookmark. The U.S. Department of Labor said it will review Fair Labor Standards Act regs that implement white-collar minimum wage and overtime exemptions and propose an update in April 2022. Comments, which must be submitted from Oct. 13 to Nov. 28, 2022, should be submitted online or in writing to the Division of Regulations, Legislation and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Ave. NW, Washington, DC 20210. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. Must be a Paid Member or a Free Trial Member to Access Content. Additionally, not knowing regulatory priorities can have an impact on budget and resource planning for employers, especially during a time of high inflation and anticipated economic recission. Many unions and other worker advocates believe the DOL should match or exceed the $921 salary level of the 2016 proposed rule, with several groups demanding the salary level be set at $1,000 per week. | 1 p.m. If such an increase is proposed, it will impact millions of workers and almost certainly meet resistance in federal courts from private employers and business groups. The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and possibly update the duties tests as well. just days before it was set to take effect. More than 54,000 people submitted comments on the rule. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} represent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement. Background on the new overtime proposal. Compete for talent by understanding how anticipated significant changes to FLSA earnings thresholds will affect your organization, Human Resources and Compensation Consulting, Prepare Now for FLSA Rule Changes Coming Soon, Affordable Housing Insurance and Consulting for Nonprofits, Business Continuity Planning and Resiliency Services, Claims Management and Third Party Administration, Compensation Consulting and Total Rewards Programs, Diversity, Equity and Inclusion (DEI) Consulting, Human Resources and Compensation Consulting Overview, Meet the Human Resource Compensation Consulting Team, Physical and Emotional Wellbeing Consulting, National Center for Civil and Human Rights, National Underground Railroad Freedom Center, Some analysts anticipate salary thresholds as high as. USA August 24 2022. As the current minimum salary amount is $684/week, it is expected for DOL . 2022. The National Labor Relations Board (NLRB) indicated in the spring regulatory agenda its intention to consider addressing the following topics using the rulemaking process in the future: The board announced it would be revising the union representation election procedureswith a focus on the amendments issued in 2020. }); if($('.container-footer').length > 1){
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The division encourages all stakeholders to participate in the regulatory process. You have successfully saved this page as a bookmark. .usa-footer .grid-container {padding-left: 30px!important;} Align the departments approach with courts FLSA interpretation and the economic reality test. Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Last fall, the Department of Labor (DOL) published its 2021 regulatory priorities, which included plans to update the top salary level that would qualify for exemption from overtime pay (known as the "white collar exemption") under the Fair Labor . Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. Preserving access to the legal system focusing on overly broad waivers, releases, non-disclosure agreements or non-disparagement agreements, mandatory arbitration provisions, failure to keep applicant and employee data and records, and retaliatory practices that dissuade employees from exercising their rights. One other item that may be in play is the duties test, Boonin added. Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. var currentUrl = window.location.href.toLowerCase();
Sign up for our newsletter and get the latest to your inbox. Most recently, DHS announced an additional extension of the Form I-9 flexibility guidance through October 31, 2022. The department said in the regulatory agenda that "the danger faced by health care workers continues to be of the highest concern and measures to prevent the spread of COVID-19 are still needed to protect them." The site is secure. In 2021, four congressional Democrats argued for a threshold in line with the historical high point of salary thresholds the 55th percentile of earning of full-time salaried workers nationwide. That would have resulted in a threshold of, Webinar Please understand that your communications with Locke Lord LLP through this website do not constitute or create an attorney-client relationship with Locke Lord LLP. Start Preamble AGENCY: Wage and Hour Division, Department of Labor. Before publication of todays proposed rulemaking, the departments Wage and Hour Division considered feedback shared by stakeholders in forums during the summer of 2022 and will now solicit comments on the proposed rule from interested parties. Section 13(a)(1) of the FLSA, codified at 29 U.S.C. ol{list-style-type: decimal;} CUPA-HR filedcommentsin opposition to the Trump administrations regulations on the issue andin responseto the Biden administrations RFI. The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. Please log in as a SHRM member. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Based on a thorough review of the Regulatory Agenda, CUPA-HR would like to highlight the following proposed actions for members, including an updated target date for the release of a new overtime proposal. }); if($('.container-footer').length > 1){
The yet-to-be proposed rule is expected to be unveiled in May 2023. Your session has expired. Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. The DOL initially planned to issue this new proposal in April 2022. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). Thank you again for providing me the opportunity to testify on the Department of Labor final overtime rule, and I would be happy to answer any questions that any of the members may have. Once a sleepy area of employment law, the FLSAs regulations took the spotlight when the Obama administration announced its intent to update the rules floor for overtime eligibility. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . .h1 {font-family:'Merriweather';font-weight:700;} The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. Learn more by reading fact sheets that cover a variety of overtime topics. Ms. Moncrief requested an accommodation that would allow her to work remotely two days per week and be allowed frequent breaks while working on-site due to her pulmonary condition, which placed her at greater risk of contracting COVID-19. There are some in the department who believe that in order to be eligible for the exemption, an employee shouldn't be involved in any type of selling, she said. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. From April through June 2022, DOL held several listening sessions for interested stakeholders to discuss any support or concerns they may have with the anticipated rulemaking. June 29, 2022. The agency already has missed its target for the overtime rule twice. As the fight in Congress and the court of public opinion continues with respect to the proposed legislation to raise the federal minimum wage supported by President Obama, the White House has announced broad proposed reforms to the Department of Labor (DOL) regulations defining the exemptions from overtime under the Fair Labor Standards Act (FLSA). This website uses cookies to understand your use of our website and to give you a better experience. The DHS has appealed the district court's decision. The agency ultimately proposed and, Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. Typically, these semi-annual agendas are issued in the spring and fall and outline federal agency goals for the months ahead. Members please Login here to view the article. Of overtime topics that the white Dive 's free newsletter keep you informed, straight from your.... Increased in 2019 from $ 23,660/year to $ 921/week recently, DHS announced an additional of... `` HR house '' in order when it comes to accurate exempt/non-exempt and. As a bookmark the Obama administration attempted to raise the salary basis threshold was increased in 2019 from $ to... { padding-left: 30px! important ; } Align the departments approach with courts FLSA interpretation and the proposal likely. 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