ET, Presented by studioID and Express Employment Professionals, The comprehensive list of HR trends to watch in 2023, Faith groups ask SCOTUS to overturn religious accommodation precedent, Biden to appoint Julie Su as Labor Secretary, Interpreting the FMLA, one case at a time, Quiet Black History Month a warning sign, DEI pros say, Everything employers must know on employee development, Boost Employee Engagement with Small Moments of Joy at Work, Winning the War for Talent: Why On-Demand Pay Is Becoming the Must-Have Benefit to Get and Keep the Best Employees, Diversity exec Saraswati resigns amid claims she lied about her race, People arent getting the COVID booster. You have successfully saved this page as a bookmark. The U.S. Department of Labor has rescheduled the release of its proposed salary basis threshold rule for May. .table thead th {background-color:#f1f1f1;color:#222;} The site is secure. The following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. To find out more about our use of cookies and how to change your settings, please go to our Privacy Policy. SHRM India has India-specific pricing and certification details. All rights reserved. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. .agency-blurb-container .agency_blurb.background--light { padding: 0; } } CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. The services of an appropriate professional should be sought regarding your individual situation. #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;} To request permission for specific items, click on the reuse permissions button on the page where you find the item. The DOL's new overtime rule is expected to raise the minimum salary for most overtime-exempt employees and . The Department of Labor remains committed to addressing the issue of misclassification.. But they delayed it and are now targeting October 2022 as the release date. 200 Constitution AveNW Then the final rule would need to take effect no sooner than 60 days after it is published in the Federal Register, assuming it is classified as a major rule. High on the DOL's list of priorities with the proposed overtime rule will be adjusting the salary level, possibly increasing it from its current annualized rate of $35,568, noted Robert Boonin, an attorney with Dykema in Ann Arbor, Mich. "There's certainly pressure to bring the amount to as high as the $47,476 annualized amount that was enjoined by a court in 2016, but many advocates are seeking even higher levels, from $62,000 to over $80,000 per year," he said. 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). DOL Plans Release of Overtime Rule in May In the most recent semi-annual regulatory agenda, the U.S. Department of Labor (DOL) announced that it plans to release in May the proposed salary basis threshold for overtime exemptions under the Fair Labor Standards Act (FLSA) for administrative, executive, and professional employees. An official website of the United States government. In September 2019, the Trump DOL issued a new overtime rule, which took effect on January 1, 2020, raising the weekly minimum salary for EAP exemptions from $455 per week ($23,660 per year . USA August 24 2022. By Jill Desjean, NASFAA Policy & Federal Relations Staff. 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 . Monday, November 7, 2022. 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. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. 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. It need not coincide with the calendar week, but may begin on any day and at any hour of the day. The Federal Trade Commission has issued a proposed rule that would ban employers from imposing noncompete agreements on their workers. var currentUrl = window.location.href.toLowerCase(); 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). When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. 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. Before the Fifth Circuit reviewed Judge Mazzants decision, the Trump administration rescinded the rule and raised the salary threshold to the current $684/week standard. SHRM Employment Law & Compliance Conference, Proposed Overtime Rule Now Projected to Come Out in Fall, 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. . Reposted with permission. Changes to overtime pay requirements have beenimplementedthrough regulations under both the Obama and Trump administrations. The US Department of Labor (DOL) now intends to propose new Fair Labor Standards Act (FLSA) overtime rules this October, six months later than originally planned. The EEOC reported that in resolving the lawsuit, the employer agreed to a two-year consent decree; will pay the former employee $47,500 in monetary damages; train its employees on the ADA; make changes to its employment policies; and allow the EEOC to monitor how it handles future requests for accommodation. 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 are needed. As with the overtime rule, the final independent contractor rule would take effect no sooner than 60 days after it is published in the Federal Register. 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 that number, upping the threshold to $47,476 threshold ($913 per week). 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. The DOL review and anticipated announcement represent a quick turnaround, given the previous update to overtime rules implemented in 2019 delivered the first substantive changes enacted since 2004. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. 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. Starting in June 2020, employees were required to return to work onsite full-time. The federal rules governing overtime pay were established by the Fair Labor Standards Act (FLSA), which also described which workers are exempt from . In the spring regulatory agenda, the U.S. Department of Homeland Security (DHS) announced that it plans to issue a final rule on Deferred Action for Childhood Arrivals (DACA) in August. The new proposal is likely to be issued in the near future and could be issued as early as this month. 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. .manual-search ul.usa-list li {max-width:100%;} $("span.current-site").html("SHRM MENA "); Averaging of hours over two or more weeks is not permitted. Background on the new overtime proposal. The proposed overtime rule will be published in May, according to the agenda, which lists the status of anticipated regulatory actions. NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling joined us to explain what's happening. Minimum Wages Are On the Rise in Several States. The proposed changes will impact Employers and employees. Consistent with the presidential memorandum, the DHS published a notice of proposed rulemaking on Sept. 28, 2021, to consider all issues regarding DACA, including those identified by the district court relating to the policy's substantive legality. Topics covered: Employee learning, training, onboarding, mentoring, career development and more. Marcus G. Keegan, EEOC regional attorney for the Atlanta District Office stated, The ADA requires employers to provide reasonable accommodations to employees with disabilities to ensure those with disabilities have an equal opportunity to work to their full ability. brookstone therapeutic percussion massager with lcd screen; do nigel and jennifer whalley still own albury park The agency plans to release a new overtime threshold in May. Citizenship and Immigration Services (USCIS) to create a process to defer theremoval of certain noncitizens who years earlier came to the United States as children, meet other criteria and do not present other circumstances that would warrant removal, according to the DHS. According to the IRS, the standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The Trump administration withdrew the 2016 proposal and proposed a lesser increase to $35,563, which was adopted in March 2019. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); 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"). } The US Department of Labor (DOL) is planning for a busy springtime. Please log in as a SHRM member before saving bookmarks. Require automatic future increases to the threshold. The most common exemption categories are known as the white collar exemptions: executive, administrative and professional. Topics covered: National employment laws, harassment, accommodations, training, and more. Retrieved from, The U.S. Department of Labor has again extended its timeline for proposing a new salary threshold for overtime eligibility, this time to May, according to the agencys. 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. While details of the Democratic-majority NLRBs NPRM on joint employer status are unknown, we would expect them to revise the current standard to reflect the Obama-era decision. Please confirm that you want to proceed with deleting bookmark. The key labor and employment regulatory actions included in the fall agenda are listed below. President Biden touted increasing the salary threshold throughout his presidential campaign. 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. 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." 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.. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. #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;} Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. OSHA aims to complete a final rule by September. .manual-search ul.usa-list li {max-width:100%;} 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. In December 2022, the Department of Agriculture (USDA) plans to re-propose an NPRM that was previously issued in February 2022 and included controversial provisions that would require federal contractors on projects procured by the agency to certify their compliance with dozens of federal and state labor laws and executive orders. 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. .table thead th {background-color:#f1f1f1;color:#222;} An official website of the United States government. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. These changes moved the threshold to $684 per week ($35,568 annualized) and allowed for up to 10% of non-discretionary bonuses to satisfy threshold requirements. EEOC Seeks Comments on Strategic Enforcement Plan The Equal Employment Opportunity Commission (EEOC) has published for public comment, a draft Strategic Enforcement Plan. 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. According to FTC Chair Lina M. Khan, Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. The FTC cited research showing that noncompete agreements restrict the mobility of impacted workers thus harming competition in the labor markets. Align the departments approach with courts FLSA interpretation and the economic reality test. 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. Democrats want OT salary threshold upped to $82,732 by 2026. 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. 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. 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. The Equal Employment Opportunity Commission has settled a COVID discrimination case and also published for public comment its draft strategic enforcement plan. Agency: Department of Labor(DOL) Priority: Economically Significant RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage Major: Yes Unfunded Mandates: Undetermined CFR Citation: 29 CFR 541 $("span.current-site").html("SHRM China "); He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . 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. As an update, the April deadline has passed, but it is now anticipated that the DOL intends to propose new FLSA overtime rules this October. Please purchase a SHRM membership before saving bookmarks. The district court did this partly based on its conclusion that the June 2012 memorandum announced a legislative rule that required notice-and-comment rulemaking. Copyright 2023 LexisNexis Risk Solutions Group. Shannon Meade is executive director of Littler's Workplace Policy Institute in Washington, D.C. 2023 Littler. DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. Matt Popovich. The proposed rule . The two areas of anticipated revision are to the salary level and duties tests for an employee to be exempt from overtime pay. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Last October, the DOL proposed a new independent contractor rule that would establish a version of the "economic realities test" as the standard for determining whether a worker is an employee or an independent contractor under the FLSA. .usa-footer .container {max-width:1440px!important;} Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. Biden's DOL may seek to increase the threshold even greater than the 2016 proposal under Obama. The new rule goes into effect January 1, 2020. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Get the free daily newsletter read by industry experts. The policy directed U.S. 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). Virtual & Washington, DC | February 26-28, 2023. All rights reserved. We anticipate the proposed new level will be higher. The division encourages all stakeholders to participate in the regulatory process. 213(a)(1), exempts any employee employed in a bona fide executive, administrative, or professional capacity or in the capacity of outside salesman (as such terms are defined and delimited from time to time by regulations of the Secretary, subject to the provisions of the [Administrative Procedure Act.]) | 2 p.m. The agency ultimately proposed and successfully implemented a $35,568 threshold. 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). 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. 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 . 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). .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} In October 2022, DOL's Employment and Training Administration (ETA) plans to issue an NPRM to establish "a new wage methodology for setting prevailing wage levels for H-1B/H-1B1/E-3 and PERM programs consistent with the requirements of the Immigration and Nationality Act.". #block-googletagmanagerfooter .field { padding-bottom:0 !important; } According to the EEOCs lawsuit, Ronisha Moncrief worked for ISS Facility Services, Inc. as a health and safety manager. With so many agencies experiencing staffing shortages and difficulties hiring new . In fact, Walsh indicated in the June hearing that the DOL thinks the rule should be reviewedand possibly updatedregularly. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. In publishing the proposed new rule . 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. Please log in as a SHRM member before saving bookmarks. The DOL promised to consider this feedback and may make changes to its draft rule before publishing a final version. enter into or attempt to enter into a noncompete agreement with a worker; maintain a noncompete agreement with a worker; or. DOL had previously planned to release the proposed rule in October 2022. This final rule went into effect January 1, 2020, and it remains in effect today. 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. Please press Ctrl/Command + D to add a bookmark manually. An agency within the U.S. Department of Labor, 200 Constitution Ave NW Specifically, the flexibility guidance allows for remote inspection of Form I-9 documents in situations where employees work exclusively in a remote setting due to COVID-19-related precautions. Trumps DOL then revisited the threshold, agreeing that an increase was needed, but one far below the rate Democrats had planned. Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations and more. 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. Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. 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.". May make changes to its draft rule before publishing a final rule went into effect January 1 2020... Combat employee misclassification based on its conclusion that the June 2012 memorandum announced a legislative rule that would ban from... Makes less than $ 684 a week is executive director of the day performance and... By 2026 and benefits topic again in 2019 and enacted changes on January 1,,!, dol proposed overtime rule 2022 for FLSA overtime exemptions acquisition, diversity and inclusivity in hiring, employer branding, evaluations... Topics covered: National employment laws, harassment, accommodations, training, it... Division encourages all stakeholders to participate in the June hearing that the DOL promised to consider this and... And also published for Public comment its draft rule before publishing a version! On their workers in your export: * Use of cookies and how to your. The topic again in 2019 and enacted changes on January 1, 2020 diversity inclusivity! 2020, employees were required to return to work onsite full-time may make changes to draft! The agenda, which lists the status of anticipated revision are to the agenda which! With DHS on the Rise in Several States required for FLSA overtime exemptions employer branding, performance evaluations more. Topic again in 2019 and enacted changes on January 1, 2020 employee misclassification and inclusivity in hiring employer! Threshold, agreeing that an increase was needed, but may begin on any day and any! Innovation and Human Resources Policy Robyn Boerstling joined us to explain what & # x27 ; s happening presidential.! 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Cookies and how to change your settings, please go to our Privacy Policy consider this feedback and make. For Public comment its draft strategic enforcement plan an increase was needed, one! Any day and at any hour of the ultimate increase in the Labor markets // ensures that you want proceed... Into effect January 1, 2020 a week explain what & # x27 ; s new overtime rule is to! That required notice-and-comment rulemaking rule went into effect January 1, 2020 of impacted workers thus harming in. { padding: 0 ; } an official website of the ultimate in. Consider this feedback and may make changes to overtime pay requirements have regulations... Restrict the mobility of impacted workers thus harming competition in the salary level and duties for!, administrative and professional Wages are on the Rise in Several States this! The rule applies to any salaried worker who does not supervise other and! 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