This website uses cookies to understand your use of our website and to give you a better experience. 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 . 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. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } While employers should be monitoring these potential changes, the regulatory process is still in the early stages, said Jim Plunkett, an attorney with Ogletree Deakins in Washington, D.C. "At this time, stakeholders do not even know what changes the DOL will propose, much less finalize," he said. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. In publishing the proposed new rule . 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. "This type of change would also disqualify many currently exempt employees from their current exempt status," he said. The new standard will revise the 2020 Trump Administrations final rule, which reversed the Obama-era NLRB decision in the 2015Browning-Ferris Industriescase and established that an entity can only be a joint employer if it actually exercises control over the essential terms and conditions of another employers employees. 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. 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). .manual-search-block #edit-actions--2 {order:2;} 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"). 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. Addressing selected emerging and developing issues such as qualification standards that discriminate against individuals with disabilities, protecting individuals affected by pregnancy, childbirth and related medical conditions under the Pregnancy Discrimination Act, employment discrimination associated with COVID-19 and other threats to public health, and technology related discrimination. 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. For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). Copyright 2023 LexisNexis Risk Solutions Group. Regardless of the ultimate increase in the salary level, employers who rely on the white-collar exemptions should be on notice of potential changes. The proposal is expected to be issued in the near future. Updated October 25, 2022: The DOL has extended the comment period for this proposed rule until December 13, 2022. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). 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). Webinar URL: https://www.complianceprime.com/details/980/new-proposed-overtime-rule-2022The Department of Labor will soon issue new . Procedures on voluntary recognitionof unions. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. Therefore, do not send or include any information in your email that you consider to be confidential or privileged. Ruling on a narrow, but significant question, the US Supreme Court affirmed that the white . 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. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Under the FLSA, employees must receive overtime pay of at least one and one-half times their regular rate of pay for work in excess of forty hours per workweek. 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. 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 salary basis threshold was increased in 2019 from $23,660/year to $35,568/year. By NAM News Room May 6, 2022 2:45pm. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) {
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The proposed changes will impact Employers and employees. 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). Get the free daily newsletter read by industry experts. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nations most vulnerable workers, said Secretary of Labor Marty Walsh. 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. Federal government websites often end in .gov or .mil. 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 . Employers can change that, Twin Cities hospital workers call out racism, demand change from employers, Top 10 Workplace Trends for Thriving Work Environments, Caregiving Support: A Smart Investment for Employers in an Uncertain Economy, 5 Workplace Gaps Employers Cant Afford to Ignore, Top Compensation Sins HR Execs Must Avoid, Rethinking Population Health and the Intersection of the Primary Care Experience, NLRBs severance ruling has broad implications for employers. Averaging of hours over two or more weeks is not permitted. Background on the new overtime proposal. 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 . 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. Section 13(a)(1) of the FLSA, codified at 29 U.S.C. 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. represent to a worker, under certain circumstances, that the worker is subject to a noncompete agreement. The proposed rule . Department of Labor Intends to Extend Overtime Pay Requirements to More Workers. All rights reserved. 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. President Biden touted increasing the salary threshold throughout his presidential campaign. 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 Overtime Rule. 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. Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. The US Department of Labor (DOL) is planning for a busy springtime. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} "If any of these issues make their way into new regulations in any significant way, litigation is assured.". Get the Quickstart Guide for Employers. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. 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. The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} The amount for small employers will increase again on Jan. 1, 2023 to $15 per hour. Although there are no legal implications regarding the administration's failure to issue the agenda in a timely manner, there are important considerations for the regulated community. 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 . One other item that may be in play is the duties test, Boonin added. Sign up for our newsletter and get the latest to your inbox. .agency-blurb-container .agency_blurb.background--light { padding: 0; } #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;} [CDATA[/* >*/. A sign stands in front of the U.S. Department of Labor. 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). Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. Comments on the proposed rule are due by March 10, 2023. 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. We anticipate the proposed new level will be higher. On Jan. 4, the Biden administration released its long-awaitedFall 2022 Unified Agenda of Regulatory and Deregulatory Actions. The Trump administration implemented the last increase from $23,660 per year to $35,568 per year in 2019. The new 2022 rule largely returns to the "economic realities" test. .manual-search ul.usa-list li {max-width:100%;} The DOL initially planned to issue this new proposal in April 2022. These exemptions are commonly referred to as the white-collar or EAP exemptions. Please log in as a SHRM member before saving bookmarks. The agency already has missed its target for the overtime rule twice. Author: Michael Cardman, XpertHR Senior Legal Editor. 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. 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.. In . Use of the service is subject to our terms and conditions. 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. Partner Russell Bruch spoke to HR Today about a proposed US Department of Labor overtime rule expected to lead to increased eligibility for overtime pay. 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. The yet-to-be proposed rule is expected to be unveiled in May 2023. . While this aspect of the exemption rules is not anticipated to change with the 2022 proposed rule changes, the duties test is important to remember when considering the classification of a particular role. Another increase has long been on the Biden administrations agenda, but it has not said what dollar figure it has in mind. 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. 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). 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 following policy statements* will be included in your export: *Use of this material is governed by XpertHRs Terms and Conditions. The DOL plans to make the changes effective in 2023. The agency took meetings and held online listening sessions with stakeholders last year. Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. A final rule on improving tracking of workplace injuries and illnesses is slated for December, as well. }. 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. }
March 21, 2022. 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. CUPA-HR filed anextension request with the department asking for an additional 90 days to evaluate the NPRMs impact on [members] research missions and collect the information needed in order to provide thoughtful and accurate input to the USDA, as well as official comments that were pulled from 2012 comments CUPA-HR submitted with the Society for Human Resource Management (SHRM). Federal law currently requires overtime pay only for employees who earn an annual salary of less than $35,568, although many such workers are excluded. 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. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. Learn more by reading fact sheets that cover a variety of overtime topics. 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. Agendas are generally released in the fall and spring and set target dates for each agency and sub-agencys regulatory actions for the coming year. The overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. $("span.current-site").html("SHRM MENA ");
Its latest regulatory agenda lists May 2023 as the target date for two key Fair Labor Standards Act (FLSA) developments: a proposed overtime rule and a final independent contractor rule. Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. The Biden Administration's fall 2021 regulatory agenda projects that the Department of Labor (DOL) will revisit before April 2022 the salary level at which an employee could be exempted from federal overtime and minimum wage requirements, as well as address other aspects of the overtime regulatory regime. 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 of these pending and future rulemakings outlined above are expected to face scrutiny via congressional oversight in the newly Republican-controlled House of Representatives. While the specifics remain unknown, some labor law experts speculate that it will: Increase the weekly threshold from $684 to $900--$1,000. ol{list-style-type: decimal;} Modify the duties tests so more employees are classified as non-exempt, and. Now is a great time to put your "HR house" in order when it comes to accurate exempt/non-exempt classifications and earning thresholds. The Biden administration has signaled its desire to return to the approach attempted in 2016. . 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. 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 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. Misclassification is a serious issue that denies workers rights and protections under federal labor standards, promotes wage theft, allows certain employers to gain an unfair advantage over law-abiding businesses, and hurts the economy at-large. We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. President Joe Biden directed the DHS on Jan. 20, 2021, to take all appropriate actions to preserve and strengthen DACA, consistent with applicable law. In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. The .gov means its official. 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). 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. 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. June 27, 2022. CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. The following roles are exempt from overtime: The salary test is where we expect to see changes. According to the EEOCs lawsuit, Ronisha Moncrief worked for ISS Facility Services, Inc. as a health and safety manager. 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