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.. It remains to be seen whether the DOL will follow its own timeline, however. Topics covered: Talent acquisition, diversity and inclusivity in hiring, employer branding, performance evaluations 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. [Mr. Fendly's statement may be found in the appendix.] The key labor and employment regulatory actions included in the fall agenda are listed below. Supreme Court: Salary, Not Daily Pay, Required for FLSA Overtime Exemptions. Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. 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. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} 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). Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} 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. Revert to the longstanding interpretation of the economic reality factors. 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. 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. Misclassification is a serious issue that . The U.S. Department of Labor has rescheduled the release of its proposed salary basis threshold rule for May. .h1 {font-family:'Merriweather';font-weight:700;} President Biden touted increasing the salary threshold throughout his presidential campaign. After a new overtime rule is proposed, the public will have at least 30 days to comment on it before the DOL can issue a final rule. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal . .manual-search ul.usa-list li {max-width:100%;} The DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . The Notice of Proposed Rulemaking was originally slated for April 2022 but then delayed to October of that year. CUPA-HR sent a letter to USCIS Director Ur M. Jaddou asking for this additional extension. 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. 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. 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. 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). ACTION: Notice of proposed rulemaking; request for comments. 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 overtime salary threshold limits will increase for the following states: California To qualify for the overtime exemption, licensed physicians and surgeons must earn at least $91.07 per hour. By NAM News Room May 6, 2022 2:45pm. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. 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). 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 DOL's proposed overtime rule would raise the minimum weekly pay threshold legally required to exempt salaried workers from overtime pay from $455 per week to the 40th percentile of earnings for full-time salaried workers. 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. Pay transparency, employee privacy, compassionate leadership and political biases are among this years hot debates, according to labor experts. For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. .usa-footer .container {max-width:1440px!important;} } 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. The Department of Labor's Wage and Hour Division is expected to propose new rules on independent contractor classification and overtime entitlement requirements in the . To request permission for specific items, click on the reuse permissions button on the page where you find the item. Your session has expired. DOL's Wage and Hour Division plans to develop and release a notice of proposed rulemaking . Survey Participation and Information Templates, CUPA-HR Welcomes a New Board of Directors for 2022-23. 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 . Updated October 25, 2022: The DOL has extended the comment period for this proposed rule until December 13, 2022. Topics covered: National employment laws, harassment, accommodations, training, and more. just days before it was set to take effect. 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. The proposed rule sent stocks for gig companies like DoorDash, Lyft and Uber down. Specifically, the proposed rule would do the following: The department is responsible for ensuring that employers do not misclassify FLSA-covered workers as independent contractors and deprive them of their legal wage and hour protections. var currentUrl = window.location.href.toLowerCase(); CUPA-HR has engaged with DHS on the Form I-9 flexibilities through the pandemic. 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. "If any of these issues make their way into new regulations in any significant way, litigation is assured.". 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. 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 . Monday, November 7, 2022. 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. .agency-blurb-container .agency_blurb.background--light { padding: 0; } The proposed rule . 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. Labor Rights. 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. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); An HR Advisor is here to help by email, live chat, or phone. 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. Washington, DC 202101-866-4-USA-DOL1-866-487-2365www.dol.gov, Misclassification continues to deny workers rightful wages; hurt businesses, economy, Industry-Recognized Apprenticeship Programs (IRAP), Bureau of International Labor Affairs (ILAB), Employee Benefits Security Administration (EBSA), Employees' Compensation Appeals Board (ECAB), Employment and Training Administration (ETA), Mine Safety and Health Administration (MSHA), Occupational Safety and Health Administration (OSHA), Office of Administrative Law Judges (OALJ), Office of Congressional and Intergovernmental Affairs (OCIA), Office of Disability Employment Policy (ODEP), Office of Federal Contract Compliance Programs (OFCCP), Office of Labor-Management Standards (OLMS), Office of the Assistant Secretary for Administration and Management (OASAM), Office of the Assistant Secretary for Policy (OASP), Office of the Chief Financial Officer (OCFO), Office of Workers' Compensation Programs (OWCP), Ombudsman for the Energy Employees Occupational Illness Compensation Program (EEOMBD), Pension Benefit Guaranty Corporation (PBGC), Veterans' Employment and Training Service (VETS), Economic Data from the Department of Labor, Learn more about the Wage and Hour Division, Federal court orders Hyundai, Kia auto parts manufacturer to stop employing minors illegally, end oppressive child labor law violations, US Department of Labor hosts annual conference for nations mine safety, health trainers at National Mine Health and Safety Academy, Oct. 11-13. Start Preamble AGENCY: Wage and Hour Division, Department of Labor. The agency already has missed its target for the overtime rule twice. 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 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 overtime rule was first slated for April 2022 and then for October 2022, so another delay would not be unusual. The upcoming proposal is likely to mirror or even exceed the changes anticipated in 2016. 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 . $("span.current-site").html("SHRM MENA "); 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 DOL, HHS, and Treasury just released an FAQ that provides guidance on if Drug Manufacturers' Coupons disqualify Health Savings Accounts. 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. The DOL has considered modifying the regulations in this regard a few times in recent yearsbut hasended up leaving the current tests alone. p.usa-alert__text {margin-bottom:0!important;} DOL addressed the topic again in 2019 and enacted changes on January 1, 2020. 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. 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. Do you need help with your HR questions? A vast majority of organizations across numerous industries face potential compliance and monetary impacts if the legislation passes. 2022: Fall 2022 Rulemaking Comments. 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 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. Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { DOL had previously planned to release the proposed rule in October 2022. However, court challenges prevented the rule from taking effect and it was permanentlyenjoinedin September 2017. 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. View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. }. Final Regulatory Text. 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 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. Rather than appeal the judge's decision, which was criticized by many unions and worker advocates, the Trump administration proposed a new rule in 2019 that elevated the overtime wage . 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 In the February NPRM, USDA provided only 32 days for stakeholder comment submissions on the proposal. Please log in as a SHRM member before saving bookmarks. Review the laws and regulations that govern overtime in the United States. The agenda says they will have proposed rule revisions and . Existing noncompete agreements would need to be rescinded and workers informed that they are no longer in effect. The U.S. Department of Labor in September 2019 updated the federal overtime rules regarding executive, administrative, and professional workers. | 1 p.m. 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. The courts blocked this proposal shortly before it was scheduled for implementation. Generally, the rule applies to any salaried worker who does not supervise other workers and makes less than $684 a week . Tuesday, February 28, 2023. 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) 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(); The Act applies on a workweek basis. "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 . 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. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. 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. 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 $1,000 per week. The proposed rule is intended to replace the 2021 independent contractor regulation. Many of these pending and future rulemakings outlined above are expected to face scrutiny via congressional oversight in the newly Republican-controlled House of Representatives. }); if($('.container-footer').length > 1){ In 2016, a proposed change would have moved the salary threshold from $455 per week ($23,660 annualized) to $913 per week ($47,476). $("span.current-site").html("SHRM MENA "); Gallagher supports organizations with comprehensive solutions to include exemption review, compensation and classification structures, enhanced management of ongoing joint-employer challenges and implementation strategies. 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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. $("span.current-site").html("SHRM China "); 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. The salary basis threshold has been raised numerous times since Congress enacted the FLSA in 1938. Starting in June 2020, employees were required to return to work onsite full-time. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). 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. Department of Labor Intends to Extend Overtime Pay Requirements to More Workers. } The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. FLSA requirements relating to minimum wage, overtime, and . USA August 24 2022. By: Jenny R. Yang February 28, 2023. Section 13(a)(1) of the FLSA, codified at 29 U.S.C. New DOL Overtime Threshold in 2022. Please purchase a SHRM membership before saving bookmarks. SHRM India has India-specific pricing and certification details. 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. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. Therefore, do not send or include any information in your email that you consider to be confidential or privileged. .manual-search ul.usa-list li {max-width:100%;} The department believes the new rule would preserve essential worker rights and provide consistency for regulated entities. 2023 Locke Lord LLP | Attorney Advertising, Employee Benefits & Executive Compensation, Environmental, Social and Governance (ESG). temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; You may be trying to access this site from a secured browser on the server. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Different workweeks may be established for different employees or groups of employees. 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. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { United States Department of Labor Washington, DC 20210 Re: Overtime Regulations Proposed in the Fall 2021 Regulatory Agenda Dear Acting Administrator Looman: . Employment and Training Administration Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States, In October 2022, DOLs 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. The proposal will likely amend the Trump administrations final rule that was scheduled to take effect on November 14, 2022, but was subsequently vacated by a federal court in June 2021. .agency-blurb-container .agency_blurb.background--light { padding: 0; } Affiliate of the Society for Human Resource Management, Home Blog 2022 DOLS PROPOSED OVERTIME RULE. An official website of the United States government. 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"). 96% of members agree: "SHRMs information is very useful to me". #block-googletagmanagerheader .field { padding-bottom:0 !important; } keystyle mmc corp login; thomson reuters drafting assistant user guide. On June 7, ICE sent its proposal to the Office of Information and Regulatory Affairs (OIRA). We anticipate the proposed new level will be higher. Modify the duties tests so more employees are classified as non-exempt, and. #block-googletagmanagerheader .field { padding-bottom:0 !important; } 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. According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} We help organizations develop a comprehensive understanding of state laws and regulations to inform investment across people strategies and operations. 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. Webinar URL: https://www.complianceprime.com/details/980/new-proposed-overtime-rule-2022The Department of Labor will soon issue new . Shortly thereafter, President Donald Trump took office and DOL abandoned its defense of the rule. An official website of the United States government. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} `` If any of these pending and future rulemakings outlined above are expected to face scrutiny congressional... Govern overtime in the fall agenda are listed below s statement may be established for different employees or groups employees. The page where you find the item salaried exempt employees have to earn at the... Document.Head.Append ( temp_style ) ; CUPA-HR has engaged with DHS on the reuse permissions on. Threshold throughout his presidential campaign HRCI Contributing Writer, litigation is assured..... To take effect from a secured browser on the reuse permissions button on the reuse permissions button on the permissions! Keystyle mmc corp login ; thomson reuters drafting assistant user guide information and regulatory Affairs OIRA... 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