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. The FTC stated that the proposed rule would apply to employees, independent contractors, and volunteers. 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 two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } The Equal Employment Opportunity Commission has settled a COVID discrimination case and also published for public comment its draft strategic enforcement plan. var currentUrl = window.location.href.toLowerCase(); The Trump administration withdrew the 2016 proposal and proposed a lesser increase to $35,563, which was adopted in March 2019. This spring, the U.S. Department of Labor (DOL) is expected to announce recommended changes related to employee salary for overtime rules as part of the Fair Labor Standards Act (FLSA). 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. The U.S. Department of Labor (DOL) recently announced its intent to update the salary level threshold for "white-collar" exemptions to parts of the Fair Labor Standards Act, a regulatory change that could significantly affect community colleges. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. 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. .manual-search-block #edit-actions--2 {order:2;} The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge. The current Final Rule on Overtime has been in effect since Jan. 1, 2020, and, at the time of its implementation, made 1.3 million American workers newly eligible for overtime. In May 2016, the Obama administrations DOL issued afinal ruleincreasing the salary threshold from $23,660 to $47,476 per year and imposed automatic updates to the threshold every three years. .manual-search ul.usa-list li {max-width:100%;} The proposed rule will advise businesses on implementing the exemption of bona fide executive, administrative, and professional employees from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). An official website of the United States government. 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. In a case closely watched by the oil and gas industry, the United States Supreme Court ruled in Helix Entergy Solutions Group, Inc. v. Hewitt that an oil rig worker earning more than $200,000 a year was misclassified as exempt by his employer, in violation of the Fair Labor Standards Act (FLSA), and is entitled to unpaid overtime wages. The exempt duties generally fall within those categories, and each category has different criteria: The salary level was last adjusted effective January 1, 2020 when it was raised to the $684 per week level (equivalent to $35,568 per year for a full-year worker). 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. } .manual-search ul.usa-list li {max-width:100%;} The proposal will likely amend the Trump administration's final . Procedures on voluntary recognitionof unions. The new rule goes into effect January 1, 2020. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} That salary threshold had been set at $23,600 ($455 per week) since 2004, and DOL sent shockwaves through the employment community when it proposed and finalized a rule to more than double . Some of the topics on which comment was requested, along with a number of alternative approaches described in the proposed rule, suggests that the ultimate product of the rulemaking may be less than a total ban. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} EEOC Seeks Comments on Strategic Enforcement Plan The Equal Employment Opportunity Commission (EEOC) has published for public comment, a draft Strategic Enforcement Plan. $("span.current-site").html("SHRM China "); DOL had previously planned to release the proposed rule in October 2022. Labor Department's New Overtime Rule Will Ruffle Feathers - Speaking of overtime, the DOL has indicated it will issue a new federal regulation transforming the overtime rule by April 2022, and . Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. Sign up for our newsletter and get the latest to your inbox. Copyright 2023 HRCI. The courts blocked this proposal shortly before it was scheduled for implementation. * * *On October 11, 2022, the U.S. Department of Labor released a proposed rule to update the test for determining whether a worker is an employee under the Fair Labor Standards Act (FLSA) or an independent contractor. [CDATA[/* >*/. USA August 24 2022. The move would have entitled millions more employees to overtime pay, economists estimated, but it was halted when a federal judge enjoined the rule just days before it was set to take effect. That final rule took effect on January 1, 2020. Preventing and remedying systemic harassment including sexual harassment and harassment based on race, disability, age, national origin, religion, color, and sex (including pregnancy, sexual orientation, and gender identity). The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). #block-googletagmanagerheader .field { padding-bottom:0 !important; } "Snowy Labor Department Sign" [photograph]. The proposed rule is intended to replace the 2021 independent contractor regulation. 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. Law360 (June 22, 2022, 2:05 PM EDT) -- The U.S. Department of Labor plans to propose a rule in October that would overhaul certain workers' entitlement to overtime pay, the agency said, pushing . WASHINGTON - The U.S. Department of Labor will publish a Notice of Proposed Rulemaking on Oct. 13 to help employers and workers determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act.. Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. One other item that may be in play is the duties test, Boonin added. The agency already has missed its target for the overtime rule twice. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} 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. $('.container-footer').first().hide(); By Jill Desjean, NASFAA Policy & Federal Relations Staff. 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. 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. Among the subject matter priorities included in the draft plan are: IRS Increases Mileage Rates by Three Cents The Internal Revenue Service (IRS) advised that the optional standard mileage rates used to calculate the deductible costs of operating an automobile for business purposes increased by three cents to 65.5 cents per mile effective on January 1, 2023. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} } 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 salary basis threshold has been raised numerous times since Congress enacted the FLSA in 1938. #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;} Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. Congress must also have keen insight of the administration's regulatory plans to assess its budget requests and operations. In the Biden administration's fall 2021 regulatory agenda, the Department of Labor (DOL)'s Wage and Hour Division (WHD) announced that it planned to release in April 2022 a Notice of Proposed Rulemaking (NPRM) changing criteria for the "executive, administrative and professional" exemptions from the overtime pay requirements under the Fair Labor Standards Act (FLSA). Colorado Maine New York The salary threshold for the overtime exemption varies based on geographical location. The U.S. Department of Labor (DOL) recently published its spring regulatory agenda containing a tentative date of October 2022 for a proposed overtime rule. We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. Starting in June 2020, employees were required to return to work onsite full-time. Eliminating recruitment and hiring barriers. var currentUrl = window.location.href.toLowerCase(); While it is unclear whether the December NPRM will include the blacklisting language again, the abstract of the re-proposal states that the new proposed rule would be responsive to the comments received on our February 2022 proposal.. p.usa-alert__text {margin-bottom:0!important;} @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Please confirm that you want to proceed with deleting bookmark. View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. As the current minimum salary amount is $684/week, it is expected for DOL . In order for an employee to be exempt, the employee must be paid a salary of at least $684 per week, and must meet certain duties tests. } The following roles are exempt from overtime: The salary test is where we expect to see changes. Your session has expired. On June 15, 2012, theDHS established the DACA policy. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. Biden's DOL may seek to increase the threshold even greater than the 2016 proposal under Obama. Protecting vulnerable workers and persons from underserved communities from employment discrimination. 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. Feel free to contact us if you have questions about this matter. The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. All rights reserved. In . Please log in as a SHRM member before saving bookmarks. The new proposal is likely to be issued in the near future and could be issued as early as this month. enter into or attempt to enter into a noncompete agreement with a worker; maintain a noncompete agreement with a worker; or. It remains to be seen whether the DOL will follow its own timeline, however. .usa-footer .grid-container {padding-left: 30px!important;} Notably absent from the spring regulatory agenda is an entry for an FLSA independent-contractor rulemaking, given that a recent blog post on the DOL's website stated that such a proposal is in the works, Plunkett said. CUPA-HR sent a letter to USCIS Director Ur M. Jaddou asking for this additional extension. Please press Ctrl/Command + D to add a bookmark manually. ACTION: Notice of proposed rulemaking; request for comments. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); The deadline to announce such changes was initially set for April 2022 but has since seen several delays. keystyle mmc corp login; thomson reuters drafting assistant user guide. President Biden touted increasing the salary threshold throughout his presidential campaign. 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. Many experts expect the DOL to set the salary threshold around $800 the mid-point between the current level and the proposed 2016 level. In 2016, the Labor Department under President Obama had proposed a salary basis threshold of $47,476/year, which was invalidated by a District Court and the lawsuit was withdrawn by the Trump Administration. The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. The DOL has set a new deadline for overtime threshold increases. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days. U.S. Department of Labor (DOL)/Wage and Hour Division (WHD), DOL/Office of Labor-Management Standards (OLMS), DOL/Employee Benefits Security Administration (EBSA), Occupational Safety and Health Administration (OSHA). OIRA is the White House office responsible for reviewing regulations and proposed regulations before they are publicly released and generally takes 30-90 days for this review, indicating ICE is on target to issue their proposal in July. SUMMARY: This notice of proposed rulemaking (NPRM) proposes to rescind the final rule entitled "Joint Employer Status Under the Fair Labor Standards Act," which published on January 16, 2020 and took effect on March 16, 2020. The federal rules governing overtime pay were established by the Fair Labor Standards Act (FLSA), which also described which workers are exempt from . The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. The FTC noted that the proposed rule would make it illegal for an employer to: EEOC Settles COVID Discrimination Lawsuit The Equal Employment Opportunity Commission (EEOC) announced that it settled a lawsuit alleging disability discrimination in violation of the Americans with Disabilities Act (ADA) by an employer who denied an employees reasonable request to work from home and subsequently fired her. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). "This type of change would also disqualify many currently exempt employees from their current exempt status," he said. Ultimately, Judge Amos Mazzant in the United States District Court for the Eastern District of Texas enjoined the new threshold from going into effect after determining the salary increase of more than 100% contravened Congresss intent by supplanting the job duties test and creating a de facto salary-only test. At the time, the DOL estimated that the $921/week threshold would make more than 4.2 million workers ineligible for a white-collar exemption and eligible for overtime pay. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. 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. Reposted with permission. XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. To find out more about our use of cookies and how to change your settings, please go to our Privacy Policy. } With the issuance of its spring regulatory agenda on June 21, the U.S. Department of Labor (DOL) announced that its proposed overtime rule is now tentatively slated to be released in October. The salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. Although the DOL will almost certainly grant employers several months of lead-up time before implementing the new threshold, understanding the potential impact of a dramatic increase now will help employers adjust in the future. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. How much of a salary increase the DOL will propose and if it will seek to index the threshold to some cost of living measure remains unknown at this time. By: Jenny R. Yang 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. However, on March 14, 2022, a district court vacated the Department's rules to delay and withdraw the Independent Contractor Status Under the Fair Labor Standards Act . The agency plans to release a new overtime threshold in May. June 27, 2022. Monday, November 7, 2022. 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. Another item on the list of DOL priorities may be the creation of an automatic annual or periodic increase to the salary level by indexing it to the consumer price index or another economic indicator so that the amount will increase without the DOL having to undertake formal rulemaking. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). #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;} Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. Marty Walsh, the Secretary of Labor indicated previously that the salary basis threshold is too low and as part of the review, the DOL will consider whether regular and automatic updates . From March 2020 through June 2020, employees were required to work remotely four days per week due to the COVID-19 pandemic. USCIS Modernizing H-1B Requirements and Oversight and Providing Flexibility in the F-1 Program, In May 2023, the Department of Homeland Security (DHS)s United States Citizenship and Immigration Services (USCIS) plans to release an NPRM to amend its regulations governing H-1B specialty occupation workers and F-1 students who are the beneficiaries of timely filed H-1B cap-subject petitions. The NPRM will specifically propose to revise the regulations relating to employer-employee relationship and provide flexibility for start-up entrepreneurs; implement new requirements and guidelines for site visits including in connection with petitions filed by H-1B dependent employers whose basic business information cannot be validated through commercially available data; provide flexibility on the employment start date listed on the petition (in limited circumstances); address cap-gap issues; bolster the H-1B registration process to reduce the possibility of misuse and fraud in the H-1B registration system; and clarify the requirement that an amended or new petition be filed where there are material changes, including by streamlining notification requirements relating to certain worksite changes, among other provisions., ICE Optional Alternative to the Physical Examination Associated With Employment Eligibility Verification (Form I-9), According to the Regulatory Agenda, DHS plans to issue an NPRM in July 2022 to revise employment eligibility verification regulations to allow the Secretary to authorize alternative document examination procedures in certain circumstances or with respect to certain employers.. Digital platform companies like Uber, Lyft, Instacart, and DoorDash are waging increasingly aggressive campaigns to erode long-standing labor rights and consumer protections in states across the country. 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. The .gov means its official. .table thead th {background-color:#f1f1f1;color:#222;} Review Administrator Interpretations, Opinion and Ruling Letters as well as pertinent chapters of the WHD Field Operations Handbook. Please log in as a SHRM member before saving bookmarks. 96% of members agree: "SHRMs information is very useful to me". The U.S. Department of Labor (DOL) recently published its spring regulatory agenda containing a tentative date of October 2022 for a proposed overtime rule. Currently, the Department of Labor requires that employees covered by the Fair Labor Standards Act must receive overtime pay for working more than 40 hours in a workweek, unless the employee is covered by certain exemptions. Start Preamble AGENCY: Wage and Hour Division, Department of Labor. 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. There is no limit in the Act on the number of hours employees aged . The proposed changes will impact Employers and employees. But they delayed it and are now targeting October 2022 as the release date. For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. Effective Jan. 1, 2022, the minimum wage in California will increase to $15 per hour for large employers with 26 or more employees; it will increase to $14 for small employers with fewer than 25 employees. The Department of Labor (DOL) The overtime threshold is a salary level used to determine which employees are eligible to receive overtime pay when they work over 40 hours in a single workweek. Now, the DOL is considering a new overtime rule and the proposal is expected to hit this coming fall. An HR Advisor is here to help by email, live chat, or phone. ET, Webinar 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. Your browser does not allow automatic adding of bookmarks. To request permission for specific items, click on the reuse permissions button on the page where you find the item. To request permission for specific items, click on the reuse permissions button on the page where you find the item. Before sharing sensitive information, make sure youre on a federal government site. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. ol{list-style-type: decimal;} 200 Constitution AveNW 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. Where you find the item touted increasing the salary level and duties tests for an to... A SHRM member before saving bookmarks policy & amp ; federal Relations Staff another delay would not unusual. Management Association for Human Resources policy Robyn Boerstling joined us to explain what #! 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